It's not likely, but it's not impossible a tornado could level this city, destroying my entire portfolio.

It's possible that if do this AFTER closing, you end up with a few evictions on your hands, which will destroy a good deal.My suggestion is to learn how the tenants feel before closing.

I assume you mean outside the 100 year (1% annual event probability) zones.  

It does not mean a good home on the MLS (which many will claim) It is actually a specific type of investment.

Similar to how paying half your mortgage twice a month (semi-monthly) means you make 13 mortgage payments over the course of a year.  

It's more important to start with where your financial goals are...and I don't mean "I want to flip this many properties and hold this many at the end of a year".  

This means under their policies, I'd have to qualify for the full 640k myself in order to get the loan. 

My current thought is to tell him after his November 1st rent deposits which means he'll have slightly less than 60 days to find a new place.

That would mean that you cannot use your entitlement again on a home over $200,000. 

Maybe one option 0% down, but a higher interest rate for them and you pay them back with monthly installments, one option with 10% down with a slightly lower rate and pay them back in monthly installments, and one option with the highest rate but no monthly installments...meaning they would get their money in full when you sell.