It's listed at 50k+ but I don't have 10k as a down payment via a traditional mortgage, hence why I was leaning toward an FHA loan.

Receiving rent payment is your only issue, stay out of his personal life.This is one of the reasons I never rent to anyone that is self employed.

He is a hands on landlord and drives around with ten thousand or more dollars in his pocket, day and night, collecting the rents and checking on his trailers and prefab homes to make all his payments and repairs.

*grants do pay your down payment, but the interest rate might be a bit higher as well, so a refinance in a year or so might be a good idea.

If you take into account that rent will continue to increase over the years while your payments remain the same your cash flow will only increase.

I closed the deal in the end May 2016 and I'm now on my second mortgage payment.

You can go up to a 4 unit and get favorable gov't financing for owner occupied buildings with low down payments and low interest rates. 

(Buy, rehab, rent, refinance, repeat.)Your choices: Use that HELOC as a down payment on a 4 unit.

It has income statement, schedule c calculation, quarterly tax payment estimates, and expense calculations for the income statement.

How do you arrange payments (partial upfront, with balance at completion)?