You do want to hire an attorney of your choosing to review the documents and be sure they're correct and that you understand the ins and outs of making this loan.  

@Andy Kaye I plan to buy one quadMFR in the next few months, I wont choose an official business model until i talk to a cpa or real estate lawyer and have more properties. thank you for the advice

Depending on who you choose, expect 1-3 days for step-up. 2.

At that point would I be able to utilize FHA again if I so choose because the original FHA is now conventional?

I would definitely choose (and do choose) the $30k property.

If you choose not to use an automated rent payment system (I don't)..make sure and get a cashier check or money order.

Meet-up this Thursday in U-district if you have not heard, wish I could make it.If I could travel back in time, I would tell myself to be much pickier in choosing properties to buy and hold.  

ARV= 55,000, Mortgage= 28,000, monthly payments= 400, Repairs= 5k to 10k, Seller wants nothing but to be free of the property, property can rent for $900 max.BTW if I choose to use a purchase agreement should it be for the 28,000 owed, or should I add the payments that are behind in with the purchase price?

It is a bit ago though and they may have improved.If you decide on the combo I would want to talk to someone who uses the model you choose or similar. read online reviews from real people.

I googled a couple of online places and end up choosing an Auction site.