Refinance the FHA property into a conventional loan to get rid of the mortgage insurance if the rates are still favorable and you've got enough equity in year three and buy another one with 3.5% down using FHA (again, you must live in it for at least a year). 

Any insurers or brokers or people who know people.

That's before deducting expenses like licensing, insurance, taxes, dues, marketing, etc.

Although we don’t anticipate any issues, we had a proper agreement of sale, mortgage and note, and we are closing with a title company (so there was a title search and we have title insurance) and will be using a loan servicing company to avoid any confusion about payments, balances due and taxes.

That includes your insurance and taxes.   

Verify the contractor's insurance.

Don't forget to remind her there are expenses (taxes, insurance, repairs - new carpet etc) and vacancies so rents can't equal the payment.

More importantly, this is an REO sale, and they typically come with title insurance.....which means the bank will pay off any past due taxes and liens that survived the foreclosure auction.

The rent is aprox $400 bellow our mortgage/insurance payments.

The rent is aprox $400 bellow our mortgage/insurance payments.