If you cannot get rid of them through vigilant housekeeping and extermination issues then somewhere they are being supplied all of their necessities.

I have spoken with a real estate agent we have used before and he thinks as long as we can supply the plans, we should be okay but he did let me know there were some additional items that will be needed if the person buying the house has an FHA loan.

I'm planning to put about $5K into it at that time with painting, minor touch ups, and furniture, and start cash flowing $500-700 per month (very conservative estimate).

I ask myself this because some properties lose some or all the possibility to cash flow because of the mortgage payment.Should I just wait till the supply increases on my area to start investing?

If rental property is in short supply in your town, then rent increases should be occurring.

The floor joist are in great shape, but too weak for the furniture that was historically in the house, so they bow from the center seam to the edge of the house. 

There's also a decent supply. 

They can knock on doors, drive neighborhoods, go get supplies, whatever is needed.  

In your shoes, based on the info supplied, if they both do business law, that's likely enough for the business structure parts you're looking for and likely either will do the job.

Even though we are technically long overdue for a correction, supply/demand and cost of new construction have not changed and it will take years to balance out and allow the housing market to soften.