I'm planning to turn at least one of the 1/1's into a vacation rental which should earn at least 1200/mo (very conservative estimate, probably higher).Purchase price: 295,000Down payment: 25%, $73,750Loan term: 30 yearsInterest rate: 5.375%P&I: $1238.94/moClosing costs: $2800Gross scheduled income: currently $2650/mo, I'm planning on $3000/mo minimum with STR, so $36,000/yearLess Vacancy/Repairs: 10% = $3600*Gross Operating Income: $32,400Less taxes ($4700 (high estimate)), Insurance ($900), and Water/Sewer ($1800):  $7400Net Operating Income: $25,000Less Debt Service: $14,867Before Tax Cash Flow: $10,133CAP rate: 8.47%COC: 13.24%*yes, I know that's low for Vacancy/Repairs/CapEx, thats because we do our own work and management.  

@John MarcheseUse a title company and/or an attorney familiar with the private lending process.

@Riley Blake  FHA does require upfront MIP (mortgage insurance premium) of 1.75%. 

The deals we have done before are conventional way through realtor, banks and title company. 

Current revenue streams:1)W2 Job- Licensed Insurance agent for Property & Casualty and Life2) Amazon FBA/Ebay selling3) Window Cleaning Biz- Have two clients so not much revenue coming from thisI have been really procrastinating on doing my notary class.

And the insurance could go down. 

But if you're in an actual flood zone requiring FEMA backed flood insurance that is a joker that could easily come back and bite you hard if the Govt continues with it's stated intent to gradually get out of the subsidization of flood insurance. 

This should be provided by the title company or lender. 

Home Possible is 95% LTV, as compared to FHA's 97% LTV, but with the added benefits of beginning with a conventional loan (no mortgage insurance for life of the loan, as opposed to FHA), having a stronger offer, no self sufficiency equation, plus less strict standards for home condition that can kill the value-add ambitions you had with your FHA.Recently there were other changes with this program that makes it an even better product, and the only person on this whole forum who seems to be catching it is @Chris Mason who has written about it herehttps://www.biggerpockets.com/forums/517/topics/42...and herehttps://www.biggerpockets.com/forums/49/topics/609...I just wanted to point that out as you get into it because if I hadn't found this product I'm not sure if I'd even have a house hack right now.  

One property I’m looking at everything is good, they have reserves, owner occupy ratio is good but the roof is currently being repaired through the insurance company.