Up till then Things weren’t too bad money was coming in and I was cash flow positive by a bit.

@Mimi PerezThe restrictive HOA will limit your future options and continue to be an expense.

Reserved the land but then now knowing what to do, gave away the option on 1st

If you are a super host I am sure you have a lot of other positive reviews, so even if it does not get removed, I am sure you will be fine. 

When you're weighing investment options, think about things like employment growth, rental needs, empty property rates, and property taxes.

They are on the ball, respond quickly, can and will fund within 10 days if needed and I have had nothing but positive experiences with them and highly recommend them for anyone looking for a HML in areas that they lend in. 

It'll be tough to get into a pure investment in your area for 35k but here are a few options:- partner on the second deal- if the numbers make sense and you could get more cashflow then you could look at a higher price point but my guess is this will be difficult to find- Buy your first property as planned, and save the 35k as reserves and/or just keep it for the next down payment on another FHA after a year- find a place that needs some work where you can use that money to fix up and force appreciation to the propertyPersonally, I would look at those last 2 options where you have the cash on hand ready to deploy for the next down payment or rehab costs if needed.

Failure to complete the transaction forfeits the $20,000 option fee. 

I still need to weigh out my options. 

Thanks for mentioning Easy Street - I'm always looking at and for more options.