A great learning experience and I am still seeking ways to make all transactions go as smooth as possible and always leave the seller and buyer satisfied with the deal.

The downside is you will need to live there, for a minimum of one year (to satisfy FHA Requirements); AND because you closed personally, you will not have Asset Protection, in the form of closing in the name of a LLC.

It may vary between different lenders, but technically what qualifies as your primary residence is merely the home you live in for the majority of the year (4/7 days a week should satisfy that requirement),  There are some nuances to this rule, I'm sure, so be sure to speak with a lender who has a lot of experience with FHA.  

My hubby and I are self-employed and so conventional loans are a challenge for us.

The challenge with out of area is lack of local knowledge & difficulty managing from a far.

Sounds like you are well on your way and will be pulling the trigger soon, I think at this point you should have been able to conduct enough studies to determine the major challenges that exist as you define multi and single family.

So, if you like Finance and find it challenging and fun, do it.

Without giving them any type of written warning for these issues, you may have difficulty making them leave if they challenge it. 

I would love to hear feedback from those out there who have faced this challenge and found a solution.

There is a lot of B and C class buildings and most will require some rehabbing to get into rentable condition; however, once they are ready you can easily fill them with students.One of the challenges I've seen is the cost is high and can make it difficult to cash flow at the end of the day.