So it will take you some time to get comfortable with the language in real estate contracts.  

And I am hoping to find a deal by then, preferably just before we move down so we can get contractors out to do whatever work I don't feel comfortable doing before we get there, but frankly, I'm willing to do whatever is necessary to get things going.Thanks in advance for your responses!

- Are you comfortable investing in the areas that provide 1% rule returns? 

Further, FHA never sees Property B w/ 5th unit in this deal, and if Property A successfully appraises for 360k today, then Property B should comfortable appraise for the required value in 5 years at balloon.

I'm not sure if that maxim still applies to the 203k. 

It really comes down to what you are comfortable with, but if your agent is quality, he/she would have explained each item in detail and answered all your questions so you could determine how to proceed.  

Has anyone done this or would you recommend doing this to maximize cash flow on your first investment?

If not there- you do need a boots on the ground- either family/friends or rental management to be a contact for any leases if you do to rent out your property- you still could purchase a SFH with a studio set up to maximize rent and hope for some cash flow! 

I want to note that ethically, I do not feel comfortable collecting rent from her next of kin so the component of obligation of the estate is largely irrelevant.You are also apparently supposed to secure all of her belongings and note anything that is removed by family members that you allow to visit the property.  

I am pretty comfortable with risk though, and am not overly concerned with the value of my property that I am living in long term.