I assume it's in the lender's best interest that I close after this policy comes into play, or is that not the case?

We did research on area and we knew there are bad elements but i think we underestimated the problem (You know mind plays with us when we have already decided to do something especially when you have overconfidence on yourself ).

A kid playing outside can break the window and you will collapse in tears. 

So I was unsure if that would play a role and should have mentioned that.   

Just a dead and a filing fee to the county clerk.

In addition to low inventory, something else is at play here in this market, and across the country.Many people, my self include, believe we may be at the start of an increasing inflationary period in the US. 

The plan would be to have 2 separate purchase contracts with closing of the 2nd property to occur after closing the owner-occuped FHA loan. 2) I'm now trying to evaluate a commercial loan for the 2nd (or both properties), but not sure how that could play out yet.

I have never played the "guess what this is" game with tenants.

If you do a smaller 5%, maybe even 3.5% down payment, it is much easier to get into financially, but then you're just playing catch up longer in terms of monthly payments as opposed to doing a larger down payment.

Then He plays very loud music, won’t let anyone in his unit including the water department cause our water bill and electric bills have skyrocketed, when the contractor goes upstairs to fix the upstairs unit he lets everyone know there was a suicide in the unit which we feel will scare away another tenant when we are trying to get it filled.