I took pictures of all kinds of issues: damage to most of my new cabinets they installed, electrician replaced a bunch of new lights and fan I had a prior contractor put in, wood trim was installed poorly unevenly cut, drywall finishing looked terrible, the plumbing they roughed in didn't line up with the vanities they knew were there to be measured... among many other issues. 

If you're attracted to the low down payment structure of FHA, your son could obtain a conventional loan, with as little as 3% down that would cost him less over the life of the loan (mortgage insurance premiums are generally less with conventional, and ultimately cancel once enough equity is obtained).Either way, if your son was in school prior to working this job, and the job is full-time salaried, a lender without overlays should be able to use his current income to qualify him.  

Principal and interest will be payable in full at the end of 12 months.(2) If the borrower sells the flip property prior to the 12-month payable-in-full due date, then the borrower will incur a pre-payment penalty.

I have no prior experience in Real Estate Investing, however, I am very interested.  

I would also make the M2M contingent on being able to show the property in the last 30 days prior to vacancy.  

Agreed, you Want to use a title co. to close, you can get a warranty deed from the seller, the prior QC, or even one to you, is no issue as long as you get tile insurance.  

Our expected cost for 2016 will likely be about $4K, where the prior years were about $6K.  

Well first off make sure they do so prior to move in otherwise don't give them the keys.  

They are inspected prior to move in, prior to renewal and again upon move out.

Also on a side note, if any experienced investors have any tips they wish they would have known prior to buying their first property I would like to hear them.