Instead  of the term "first time home buyer" it is more so "low money down loan" meaning you can mortgage property with little or no money down if you plan to owner occupy it.  

I am currently 24 years old.Here’s a little information on my current property (primary residence):Purchase Price: $130,000.00 Mortgage Balance: $99,937.34 Market Value: $180,000.00Market Location: Spring Hill, Florida, USA (Tampa Bay Area)Of course, the best scenario would probably be to move back with my parents, but, truthfully, I do not want to move back with my parents and siblings; however, I would be debt free and generating income from my primary employment.I feel that the downsides to selling my home is that the market in my area (currently a seller’s market) is extremely hot and, by holding onto the property, there is a likelihood that the value of the property will eventually increase substantially over the next few years.If you were in my position, what would you do?

That's way too much unless you basically re-build the whole thing.Second, even with a basement unit, the cap is way too low for 1.3M, especially you are putting 480K cash in reno. 

I know I could try to low ball the offers but it seems pretty consistent in many areas.

I THINK this property will appreciate significantly with what is going on in the neighborhood, but even if it doesn't, I'm confident I can have it rented or sell with a low chance the value dipping below what I paid.I'm not trying to aggressively expand right now...

My husband are new to the game and have an opportunity to buy a neighbors house at a low cost.

I'm curious as to the contracts with the city, in terms of length and the likelihood of the city pulling out of the program (assuming everything with the agreements is in compliance and maintained).  

I do think we can convert the top to a 3-1 for relatively low cost and charge more for it. 

You go too low and people begin to wonder “what’s wrong with the house?”

In the near future I will be using an FHA loan with a low down payment to purchase my first investment.