@Andrew BeckerNo you can’t do that with fha or conventional loans.

He would then charge the homeowner for services rendered or whatever and be on his way.

So instead of renting out one side at $600 you could rent out (lets assume there's two bedrooms) each bedroom at $400 each (obviously utilities will play a factor in how much to charge per room). 

Prop 10 eliminates protections for homeowners and allows regulators to tell single-family homeowners how much they can charge to rent out a single room in their homes.

Hi Blake, I am literally doing research on whether to choose FHA vs Conventional. 

You can get privacy in a Florida LLC if you register the member/manager as another anonymous LLC (like WY, NV, NM LLCs).For asset protection purposes, Florida multi member LLCs have good charging order protection.

My monthly payment which includes T&I is $579.33Balance is currently $48,368The house is assessed at $91,700 for tax purposesHouse sits on 2 acresHouse is approximately 1,500 square feet, 3 bedrooms, 1 bathThis house is located in the countryThe house is old (50+ yrs) and the septic is a conventional system. 

Your 401k can't sell the property it owns, but again not to disqualified person.If you wish to use leverage to acquire investment property in a retirement account you are not allowed to provide personal guarantee, therefore conventional loan with 20% down would not work.

I'm able to put down exactly 20% in down payment for the new house purchase.Is it a better overall strategy to keep/rent out the condo which is expected to net me a yearly profit of about 11k after taxes and HOA common charges and simply take out a 520k a mortgage loan for the new house ? 

Conventional/hard money lending won't get you there without a ton of experience.