Split the down payment and make two smaller down payments on two separate houses, a year apart (I think that's the limitation on FHA loans).

That would make the house into 2 rent-controlled units.If it was me, I'd rent out the entire house that includes the in-law to 1 party, 1 lease, which would make the house not rent controlled.

I recently purchased a home in a small town within it's city limits.

Like most of you, Im a bit of a control freak when it comes to my investments so I self-manage and am in contact with my tenants so this is outside the box for me to allow/need the PM to handle all aspects of this investment due to the distance, but if the numbers are there take advantage of it... right? 

That in turn limits me to about 1-3 deals a year while I wait for equity to build.

This limits my options significantly.

Problem is that starting out you don’t really know or have access to these deals due to your limited network.

It's easiest for me but there are plenty of other competitors with similar products, for what its worth.I used a commercial loan and an LLC to limit liability. 

This is totally out of your control and you have done everything you can to mend the problem but are not able to.

If the furnace had some specialized function, such as in a climate controlled self storage facility, then it could be a 5 year asset.