From what I gather the house will need a new drive way, garage door, paint, yard cleanup, and carpet in 2 bedrooms.My ultimate goal would be to take the loan, over 10 years, interest only, and a few years in refinance it into a conventional mortgage and use the excess money to go towards house #2.

As well as excessive reliance on property manager to solve problems, which essentially eat into profits.

I just found out that they denied me for excessive DTI.

@Ned Carey  agreed Ned one horse town.. town loses horse town dries up. don't want to be investing in real estate in that scenario.. and renting to old owners ( if they are foreclosure bail outs) is really tough I tried that for a few years and they NEVER work out.. and subsequently the state of ORegon made it illegal..

Even 5 years ago I would say would be excessive.

I don't understand your excessive resistance and posting trying to demean those looking to fulfill said niche.Start a blog and post about it.

Got out of accounting in NYC; absolutely hated the dry, monotonous work.

Inform your other tenant if the noise level from them is excessive to call the police.

Don't buy one of the newer all in one style washer/dryer combos - they take forever and a lot of power to dry the clothes.  

Interest rates are low, with an FHA you have to have PMI, theres no way around it. and the lowest interest rate they will give you is 4.75% that it, cut and dry.