That has greatly reduced the "stupid trip" calls.       

At 5% down the annual premium goes from 1.35% down to 1.30% not much only 5 basis points but its decent.Only other way to reduce annual MI premium is by using 15 year loans which have a much lower annual premium when you put more money down but it won't be too great for cash flow since the payment is much higher.If you put 10% or more down your MI will fall off when your loan reaches 78% LTV based on the value inside FHA's system called FHA connection (not market value unlike conventional).Most people dont put down 10% anyway maybe 1 out 40 people who uses FHA puts more than the min 3.5% down in my experience.

Whatever "incentive" money you put in the purchase agreement will just go to the bank to reduce the seller's short sale deficit.

As long as that contact is limited to just attempting to get the borrower to acknowledge the problem and begin working through it, basically get them to become proactive in looking at their options and deciding what if anything they can do about it are you still compliant and legally able to make that contact? 

You or someone would need to negotiate with the lender to reduce the debt.  

Can the profit from flip be used towards other property purchase with 1031 clause to reduce tax

I just got the word from my primary bank that we can move forward on a refinance on our primary residence and will be dropping to 3.6% on interest and reducing our 21 remaining years to 15 years.

One of the big risks that upon have is that if a probate is opened, your ability to control the deal will be reduced, perhaps radically if a court order confirming sale is required.

This particular tenant has a lot to learn and tends to be more reactive instead of proactive.

We have a good rent deal for the location, but any purchase (that we live in) can reduce our cost of living, and effectively: cash flow.