Investing is all relative...for example, I'll take a B-class property that breaks even every month over a C-Class property that cash flows $600/mo. because it works better for my plan and style...the point is that any rules about returns are crap. 

I would recommend checking the USDA website to check their mapping restrictions.

Especially if purchased in Chicago where the rules are more relaxed and I can rent out basements. 

For one thing, condo associations (with support from enough owners) have the power (and the motivation) to severely restrict your ability to rent at any time.

The potential pro to a recourse loan is that it is usually not as restrictive.

do I stick to the, if it isn't broke don't fix it rule ?

He should be able to give you the rules on what you can/can’t do and how long you need to hold a property, etc.

are there other restrictions on the FHA loan that I should know about?

If you buy vacant in the suburbs for the 1% rule the value stated in an appraisal will be for an owner occupant, i.e., sales comparison approach.

A lot of the % rules we discuss on here rarely apply.