I always have a paper purchase agreement with me for the meeting, even if I don't think the deal will work out.

Even if the numbers work out on this purchase (which to me it looks likely you will extract very little of your initial investment out via the refinance), you have to question if there is another property that would work better. 

So, it may work out.

For the most part, if people are honest and upfront both as a landlord or as a tenant things are easier to work out than if they aren't.

An FHA loan allows you to have the highest leverage possible in real estate investing, and as long as the numbers work out, it can be a great first investment. 

I dont think it will work out based on the terms so I asked that he keep me in mind later on.

The reason being is I do have a lot of equity in our property and the rent doesn’t work out for cash flow unless I would do section 8.

Hi Kris,So you suggest going with major lenders like Fannie Mae and Freddie Mac, and if it doesn't work out to go with local credit unions?

I am going to get routinely screwed on the move-out as it is.

Don't forget that you can sell the house if it doesn't work out.