@Matt Rusk I would have to agree with your lender.  

If the investor needs more security before investing, attempt to find a tenant who can agree to lease for higher end amount based on comps once the repairs are done, then sell 1/2 to investor now that you have Letter of Intent from tenant. 

As @Greg Fitch suggested, I would find a knowledgeable real estate agent and see if you can pay them an agreed upon fee to provide you the information you are seeking.

Account Closed -  Geoff makes good points and I agree that if you should save up the cash VS paying extra on current mortgage. 

I'm curious, do you know if this is pretty common elsewhere around the country?

He stated best price was $600k, but knowing he really want to sell, I only agreed to pay $470k (Seller brought building for $420k during 2010 from bank. 

Did you also agree to a % of each resident housed in the home?

I agree with @John Warren, you can still get a low money down conventional loan (in the process of using one myself for my first deal) which will most likely be at a slightly higher rate than an FHA loan but more flexibility when it comes to what you can buy and where.

I agree that it would be a good idea to have that kind of language in the lease.

Agreed.