They're trying to fine me $500, and presumably charge additional fines later.

Probably my age showing, at 56 I would likely keep the $800 month knowing that at a later date I would still have that equity and be able to sell for something similar (while there are ups and downs I choose not to sell when the market is horrible).

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

To be clear, I know that future income can't be used when buying the secondary home itself, but I'm talking about using the receipts after buying the secondary to show additional income when I went to buy the primary later on.

you can always transfer it to an llc later if you want.

I know I can depreciate the house on my taxes, and that I have to account for it later if/when I sell the property.

What alternative options, if any, would you use to temporarily patch the problem to buy time and fix it later?

If you are haphazardly placing a policy on your property because it's quick and dirty, you could be setting yourself up for a world of headaches later. 

If you do add solar later you'll need less of it to offset what you use.

My question is, should I give up this opportunity in order to take advantage of a First Time Home Buyers loan to later move out and rent out the property?