Remember, unless you have an ARM, your mortgage will stay the same.

@Abhishek Pareek As long as you do a 3rd party inspection and really look at structural, safety and mechanical issues.

I think I am going to just pay off the 57k I owe on my first investment to give me a little safety net and lower my payment. 

FHA inspections include additional safety items such as peeling paint and stairway handrails, etc.

The IRS understands that sales between family members can not be at "arms-length". 

@Paul Costick - True, twisting the arm of some random contractor to become an investor might not end well.

The following is a brief summary of the law from a property management website - https://gpmsf.com/how-to-handle-roommate-changes/"Occupancy Numbers in San FranciscoIn 2015, the Board of Supervisors passed the Jane Kim legislation, which basically says landlords have to allow as many occupants in an apartment that health and safety standards will support.

At first I was annoyed with this, but it's a good safety net for the seller.

Site safety?

You need experience and knowledge in; soil suitability, EPA guidelines, Department of Transportation requirements for highway/road access, road development, zoning and permitting, accurate bidding, utility management, life/safety requirement and so forth.