How will you get a certificate of occupancy with open permits?? 

I'm no so concerned with some random handyman doing trim or drywall, but not tightening a screw the right way can actually burn down a house and kill the occupants.

@Brendan Harding If the $150k in repairs is accurate, you're profit will be tight once you factor in carrying costs and transaction costs.FHA 203k loans are meant for owner-occupants.

Since FHA loans are for owner occupants only, is it possible for you to qualify for the FHA loan more than once?

The faster I get to my breakeven of 65% occupancy, the faster, I am not putting cash out.

However while discussing this with someone from the registration department they mentioned I would also have to obtain a "use and occupancy" permit because my house has 2 dwelling units, and their records indicate only one.

@Kenny Robbins I do recall there being a back and forth with the city regarding a high occupancy permit for 6 adult tenants living in one house, not sure where that stands but would recommend reaching out to the SDHC as @Kenneth Donaghy suggested although they are a little tougher to get through to someone these days. but I'll have to stress again that I recommend your numbers still working for long term rental for a single family/party. 

Explain to cold callers your company has a requirement that in order to see the property applicants must submit completed on line applications, one for each occupant over age 18, and do they have pets?

The tenancy commenced immediately despite the fact that they wont be able to move in right away, due to being out of town for their occupation. 

In short, govt backed loans require owner occupation.