When considering owner-occupied, you have an option to choose an FHA loan at 3.5% down payment, however FHA does require two separate mortgage insurance fees, which could make the deal less desirable.

Those requirements are: Reserves savings over 10%, No litigation, no one party owns more than 10% of the total units, low renter and high owner concentration, and sufficient insurance.

The tenant’s friend was smoking a cigarette, and it was concluded by the fire department that was the source of the fire.Here’s the rub, tenant doesn’t have renters insurance, let alone one with a fire clause.

Property Coverage (internal & external)?

My monthly expenses for the house including mortgage, 5% vacancy rate, 5% repair cost, water, taxes and insurance will be $2,400.

You may invalidate your insurance by renting out a illegal unit.

A friend told me that insurance rates on apartments are much higher than on a duplex or sfh. 

For up to 12 months, and in some cases longer, life insurance companies can provide a firm commitment to borrowers that today’s interest rate will be the interest rate when they close, barring any substantial changes to the property and its economics.

Don't know what your taxes are, but assume insurance at $50/mo. 

If you already own the home you live in, then you can only use a FHA loan for a new property if you:1. are moving because of a work-related transfer2. an increase in family size requires a larger homedirect quote:“FHA will not insure more than one Property as a Principal Residence for any Borrower, except as noted below.