He was asking for the process and I explained this to him.....please correct me if I'm wrong:Since he and the seller are discussing directly as his landlord, I said he'd be best to use a real estate attorney and title company, leaving Realtors and commission out of it. 

. , you're correct.

Since you're a newer investor, I'd expect your rates to be around 12% and 3pts with 10% down payment.Your comps should dictate what you do to your house (in regards to that extra bathroom), not your own personal opinions or anyone else's.See if you can bring a contractor (to get bids) and inspector (to find out what's wrong with the house and determine your scope of work) to the house.What program are you with? 

That should then not be classified as an "eviction", correct? 

Please correct me, and be blunt if my thinking is wrong but it seems like if I move in and live there for one year, I will be able to save money from renting somewhere else while building equity in the property.

1) Yes that info is valid2) Bid a good deal higher than someone with a conventional offer to give the seller a financial incentive to take your offer.3) Use an experienced agent who gets a lot of deals done.

Correct...and so far, with a couple of exceptions, the ONLY reply on this question that is correct....because it's the only one that used math.I remember all the people in my life, my own and my daughter's, taking math that have said, "why am I learning this...I'm never going to use it?"

@Jonah Molina Rich dad poor dad is just a guide that has many flaws, but in general it is correct, but not in every situation. 

So then the remaining funds beyond the purchase price go into escrow, correct?

Also, I understand I would be at risk of the "Due on sale" clause, but it is rarely called, correct?