However, if you adopt the practice I have described herein, you 1) reduce the odds because you remove any grounds they may have, (deadbeats know the system, believe me) and 2) if you do end up in court, you have a paper trail that demonstrates you complied with the lease, addressed any concern they had in a timely fashion to the extent the lease obligated you, and that they were fully satisfied with everything you did.  

(I don't know, I didn't work it out myself)...Other than the neighborhood concern that has already been addressed, the main reason I would be against your quoted Pro Forma numbers is that at the end of the day, you have only turned your initial equity of $34k into a (hoped for) $41k equity, which is not enough of an increase to be able to continue a "Buy, Rehab, Rent, Refinance, Repeat" strategy.

Yes, that house hacking strategy is something i've been looking into a lot lately but my concerns where not being there most of the time because I travel to earn an income.

What Marc wrote about expense risks with old buildings is exactly my concern, and since we will not move into one of the units, the uptown model will not be a fit for us.

My concern is with the SEC and securities laws.  

I don't mind posting a surety bond , but concerned about getting wrapped up in a some type of scam somehow..

I'm concerned about not being unable to take advantage of something like that because I technically won't be a first time buyer.HELP ?

If you have concerns about the plumbing, include a licensed plumber in the inspection process.

I understand the rate adjustment might be concerning, that is a decision you need to be able to sleep at night.

There are other FHA requirements concerning which you should contact your local lender, but determining whether or not a triplex or fourplex meets the self-sufficiency rule is a good place to start as this rule will immediately eliminate many properties from your search, especially in expensive markets like ours.