If you made it this far, thanks for bearing with me!

Which architect are you usingWhich GC are you using Are the soil reports done on the property already or is that another cost and variable you are unfamiliar with What kind of material do you want to use I can go on but I'm sure you get the idea. 

There is a wall between the kitchen in the dining room that is not load bearing so we would be able to knock it down, but then that would cut down on the space for appliances and cabinets.

I know they are insanely expensive, but a septic system that is effectively a waste treatment plant can function in almost any soil.  

—In all criminal cases, contempt cases, and other cases filed pursuant to this chapter, if a party has sold, leased, or let real estate, the title to which was not in the party when it was offered for sale, lease, or letting, or such party has maintained an office bearing signs that real estate is for sale, lease, or rental thereat, or has advertised real estate for sale, lease, or rental, generally, or describing property, the title to which was not in such party at the time, it shall be a presumption that such party was acting or attempting to act as a real estate broker, and the burden of proof shall be upon him or her to show that he or she was not acting or attempting to act as a broker or sales associate.

It bears repeating: stick to your numbers.

If i have to rent in Hendersonville, or Johnson City, or even Knoxville I will.But what is the best way to use my equity, bearing in mind I soon want to be a "happily unemployed" investor, and I'd like to do it in 5 years?

I think it bears mentioning that there seems to be a virtual 'order of operations' required in order to have rental income treated as passive. 

. - I know that FHA would bear a permanent mortgage insurance premium (bad for cash flow) as well as an up-front premium, whereas Conventional, though requiring an additional 1.5% down at a minimum, does not require an up-front premium and the monthly PMI could be lower (good for cash flow) and dissolves after I hit 20% equity (even better for cash flow). - I also know that if I choose FHA for the lower down payment, I would want to refinance out of FHA to Conventional at some point to get rid of the permanent MIP to improve my cash flow.

.- Epoxy patch all cracks in the foundation walls per the attached specifications I would recommend the owner maintain the following items in the future:             - Maintain grading around the foundation of the house per the attached specifications             - Epoxy patch all cracks in the foundation walls per the attached specifications as they appear             - Keep soil near the foundation walls moist during dry weatherThe seller has offered to complete the piering (estimated at 5k) with an offer that matches the asking price and my agent said all the cracks appear to be epoxy sealed already.