I have also used NFCU's 100% financing options (3rd house, converted to rental, still own).You can get two VA loans if you have enough eligibility.

It will serve as a primary residence for awhile, and my plan is to convert it into a rental property after some time.I want to build a home and I realize I may be paying a premium for that, does anyone have any tips on how to best estimate my monthly payments including utilities, property tax, PMI, etc.?

Its my understanding that if you obtained this property and wanted to sell it to someone who is paying with a mortgage you would have to first convert your tax deed to a warrantee deed.

Anyways the house details are below.This is a SHF, that we plan to convert to a duplex. (2-2bedroom units) The lower unit will have 2 big bedrooms (12x14 and 10x14) large kitchen, large bathroom, large living room etc. - currently the back yard is a nice size and has a in ground pool with a new liner.

Besides ease, I've never understood why a lot of people convert their primary residence into a rental when they move out.  

I've seen a couple but they were multiple SFH buildings on one site that needed significant work OR larger converted multifamily in less than desirable areas.

It's a converted SFH built in 1907 also. maybe that helps.

It has a cistern but I was told that it is in the city water zone, and it has sewer.Has anyone had experience converting to city water from a cistern?

Make sure you exclude the ones in the 'bad neighborhood' you said is close.Also, is this a true duplex (i.e. was it built originally as a multi-family), or is it an SFR which was converted?

I did my first buy and hold deal at 19, which I then converted into a 200% profit flip.