I'm in iowa and the state law requires me to carry the existing lease.

Joe, I know a man that can do it all and carries all license.

Move out of the home after 12 months and rent out my old bedroomAfter researching FHA loans, I've found that some people believe this plan to be fraudulent while others say that I can carry out my plan as long as I live in the home for 12 months. 

We use all the vendors Tarek mentioned, but also Forrest for doors and windows, spectrum for paint, and the best pricing for cabinets and cash and carry slabs is Builders Warehouse.Good Luck!

(Some investors simply have a preference about not carrying debt.)In this case, you are much better off leveraging because you can earn a much better return on funds invested than the interest you'll be paying for them.Let's say you want to keep $5K liquid for repairs and  such for each property and that the acquisition cost of each property is $95K.  

What sort of insurance coverage should I carry on our rent house?

Once that figure is established then one subtract following costs: 1.Sale Cost (Commission and escrow)2.Carrying cost (Loan cost)3.Fix up cost4.Desired Profit5.Purchase escrow costAfter one deducts all the above costs from the projected sale price one ends up with recommended purchase price.You can call me if you have any other questions.Good luck,George

The main reason for the new mortgage is so they can sell the townhouse vs. moving into the other property without a mortgage lined up and carrying 2 mortgages, one being a 15% HML.  

I agree, carrying that much cash around is a recipe for disaster.However, you stated in the ad that you don't accept cash.

Unfortunately, I just don't have the ability to carry more than one project at a time yet.