If you want to rent it out right away you would get 75% LTV and a higher rate.When you go to buy the second property, you may be able to buy a fixer upper with all cash and then refinance that one after you fix it up.This is pretty much what I did (minus inheriting the property) and I have 11 rental units now.One thing to be aware of is your debt to income ratio in order to qualify for mortgages. 

I am not aware of the specifics of the contract at the moment but I need to help him with this. 

Many shy aware from Sec 8 and other govt programs, not us, we take them weekly.

Please help any help with answering the suggested answers so I know where I went wrong in part 1 and any additional clauses that need to be included in part 2.I am aware BiggerPockets does contain contracts specific to each state but how much in detail are they i.e do they cover everything I've mentioned and perhaps even more things I haven't thought about yet?

If one tenant requests to move out then have the one staying requalify and sign a new lease.

This comes with it's pros and cons but I don't see that as a bad option. or...I was also thinking of staying with my parents another year or 2, stock piling cash from the house flipping I do with my parents business, and then save up enough to buy a 8+ unit building to rent out.

Stay away!  

I'm going to occupy for about a year and I want to make as much rental income on it as I can while feeling good about the neighborhood I'm staying in.

Is this difference in rent common and do you chose to invest in Allentown section 8 then or stay away from it and why?

Be aware of the market & society in general before you invest.