Minimal work is required on the property.

The real power of the FHA loan is that it allows those with lower credit or minimal money down to purchase a home.

If you're trying to build a lot of wealth while trying to minimize the # of units you own therefore minimizing time invested, it makes a lot of sense.

The rents do not support the asking price and the seller flavors that by minimizing expenses and allocations.

If it is minimal, it might not be worth it.

One of the reasons for wanting the 3 bedroom is there is minimal additional construction cost, but will generate $200-300/month additional rent.  

I think if you and your wife really dug into the research, you guys would be able to find a property at that price point where even with a Property Manager, or rehab/renovation/repairs etc; the additional costs would be minimal, considering you guys make a decent chunk of cash to weather it all. 

Would it make more sense to become a cash provider if I work a full time job, have a good amount of cash saved up and have an excellent credit score with minimal debt?

I want to minimize the risk for fires since the bedrooms are carpeted.

The seller was a local flipper who was looking to sell to get his hard money covered.Went in with an offer slightly under asking and got it accepted with minimal issues.