If you are looking to purchase a home that needs rehab I would sit down with a mortgage broker and discuss your options and tell them you want more info on the FHA 203k loan and the Fannie Mae Homestyle renovation loan.I have had several clients here in Connecticut use both loans with success and they typically chose one or the other based on their personal situation.

Neither situation is conducive to FHA mortgage.

It wouldn't take much for this entire situation to go bad and end up costing you a lot.If the two units rent for $2,000 a month then a property manager will cost around $2,400 a year.

I've joined the local REIA, created an LLC, and am thirsty to learn all I can about the aspects of real estate, deal structuring, and how to analyze and take advantage of situations and opportunities as they present themselves.I'm focusing on generating passive income for our family, and pursuing a level of financial freedoms. 

See if there's a way for you to do business in the park that can be a win/win situation for both you and the manager.

I don’t think the other facts will change your tax situation much. 

@Elise Bickel we ran into the same situation and found out that it does not apply just yet.

I don't consider the leasing fee a profit center given the value of my time, prepping the property, showings, lease, move-in and then the first month or two is generally higher service volume with a new tenant.I believe in most situations we are far better off keeping the tenant happy enough to want to stay put and avoid the turnover.

If this is not a Live-In situation, you'll probably need 25% Down Payment as opposed to 10% as you show in your numbers. 

I am working in Panama City in construction and was wondering how you all have been doing coping with this situation?