I know this is old... but...FHA is an owner occupant loan, yes... but only have to live there for 1 year.You just can't use another FHA loan while one is already in place, unless you have some sort of employment re-location letter.Doesn't mean an FHA loan can't be in place after 1 year seasoning period...

I also recommend EPLI (employment practices insurance) because it is very cheap relative to your exposure as an employer.  3.

I want something certainIf people know up front they're going to lose their earnest money and they have twelve-months to get on the job of getting financingHave a mortgage broker prequalify the buyer before they move in increases the chances of them getting the mortgageYou can get more money by doing lease purchase as a seller without the risk of dealing with owner financing and getting an attorney to forecloseI think if your buyers agents would work with self-employed people that have large down payments meaning more than 3% for FHA and help them build a credit rating, they would have a good portion of their business doing well; they may even be able to get the commission upfront and wait for the lease purchase to finishAs sellers we all want top price and net the most amount of money, and It generally costs 10% to sell with real estate commissions, closing costs, and sellers' concessionsIf you help somebody buy the property, you can net more money using lease purchase

I'm employed now for 8yrs and I just started my paint business.

One way will be wages, subject to self employment tax.  

Both homes are in areas with stable employment for high income earners.

Employ a process for removing the outgoing tenant from the lease and charge a reasonable fee for this administrative work.

However, from tax perspective, it seems to me flipping houses under an llc or s corp pays more tax due to self-employment tax.

If you research his "employer" I bet he is the owner.  

I could write out some document employing them for free rent but not sure how that might work atm.Thoughts: Putting them on the loan may be silly because I have better credit I believe.