I have gotten pre-approved for an FHA loan up to $220k.

I need a co-signer and I want to use an fha loan.

I heard that short term loophole is a one time benefit that you get the year you start service.

The property has an existing long-term tenant and is cash-flowing.

In this case, where they NEED to secure a new rental vs a case where they merely WANT to move, they’re expectations will become realistic VERY quickly.If a property owner could net the same amount of money doing a long term rental, then that’s what they’d do so to avoid the more work and less uncertainty of 30-90 day rentals.

Our long-term plan is to eventually move out, rent both units, and buy a house of our own.

Do I go with a Hard Money lender until I can refinance into a Conventional loan? 

This notice contains the homeowner's name, auction date and in some cases a description of the property/principal loan balance. 

With so many variables and decisions involved, it’s tough to give a precise answer.One option, as @Melvin List suggested, is to use an FHA loan with a 3.5% down payment.

I'm assuming this is for a long-term rental property.