Doesnt sound terrible if you think your buying right and will have some nice equity in the home the day you close or with minimal repairs thereafter.

Personally, if there is no indication that a tenant will be able to catch up their account by the 15th of the month, we are working with our owners to begin the eviction process.

Buy and Hold with turn-keys sounds great but appearances can be deceiving and seems to require a lot of money to start in order to minimize risk.I'm thinking that doing an owner occupied small multi-family could be a great way to start out?

It is vague about what substantially change is but does indicate adding verbiage to allow certain family members to move in to a unit is not a substantial change (I recommend all LL add verbiage to their lease to protect this right).  

I will be using FHA to purchase this so minimal 3.5% down. 

If she feels threatened by this, it is a good indicator that her future ability to pay is limited.  

You have to be able to maintain minimal emotional involvement in the property, you must be able to view it as an asset on which you derive income.  

I agree that there is not enough equity in the house to do a cash out, but a lot of the literature and research I had done indicated that was the best course I just couldn't make the numbers work and didn't want to blindly follow a system that may not apply to my specific situation. 

Another indicator of how the Dallas/Fort Worth housing market is doing!  

The inspector charges a fee, so some folks pay for repairs out of pocket and then have one inspection to minimize costs.