What are the size dimensions of the units?

@Charles Worth Yes, I think the size of the apartments in NYC is a lot similar to greater cities in Europe.

What we bought were lots 92 & 93, but apparently a small portion of each of those lots were not sold to the people who bought the lots with the house.

In your situation, I'd be making sure anything you buy doesn't directly affect your educational processes, but always remember, it's a business, and any business needs attention - even your Property manager will require a portion of your time (maybe 30-60 minutes per month) - answering emails regarding maintenance, querying invoices, etc!

As long as the relocation meets the two requirements above.Increase in Family Size - A borrower may be eligible for another house with an FHA-insured mortgage if the borrower provides satisfactory evidence thatThe has had in increase in legal dependents and the property now fails to meet the family’s needs; andThe loan-to-value (LTV) ratio on the current principal residence is equal to or less than 75% or is paid down to that amount, determined by comparing the outstanding mortgage balance to a current residential appraisal.Vacating a jointly-owned Property - A borrower may be eligible for another FHA-insured mortgage if the borrower is vacating (with no intent to return such as divorce, legal separation, etc...) the principal residence which will remain occupied by the existing co-borrower.

As to screening, I screen all my tenants the same, with the understanding that a portion of their rent is paid by S8 so the income requirement is adjusted accordingly.  

Determine which size homes are most profitable to flip, then buy the ugliest home in the neighborhood that will still qualify for FHA financing.

Funny but perhaps confusing @Brent Coombs.Just to help clarify what I perceive your point to be is that if the home is so underwater that the bank is willing to write off a portion of their loan if you just find them a buyer WHO CARES how it cashflows out in rents?

This means that they have overextended their ability to compete and market into the wave.Don't get me wrong, this method can be a small portion of your portfolio and you’ll be able to brush it off—but if it’s a large part of your plan, it could easily end in catastrophe.

Adding a walk in closet to to lower bedroom that will most likely be a guest bedroom or a child's room, wont do anything for the salability or marketablity of the property.With a home of this size you want to sell life style and comfort more than anything else.