An inspection will be performed, which may or may not result in the deal coming to an end or a renegotiation on price. 

Not sure what unit count you're considering but the nice thing about jumping above 4 units is the bank will put more weight on the performance of the property than your own personal finances. 

(I know sounds too good to be true)The property has a 10 year tax abatement since it is new construction in Philadelphia therefore I only pay about 16/month in taxes.Final monthly payment: 1550Estimated Rent 1800Cash to Close: 10k~30% yearly return.

I have also been told by a real estate agent that I’m friends with that I should start by flipping houses in order to increase my capital since I only have about 30k right now.

Plus if I only put down 3.5% and fix the house, could I do a cash out refi after.

A duplex generally is going to perform better because it's a single structure with 2 streams of income. 

Since it is a relatively short term stay (3 months) compared to long term tenants.Do you still perform a background check?

Since it is a relatively short term stay (3 months) compared to long term tenants.Do you still perform a background check?

Should I only take out what I need for another down payment, or as much as I can to potentially buy two properties?

being a high volume transaction company we do see this alot.. more so in the mid west were values and buyers tend to be a little tougher to get to the finish line especially first time buyers   compared to high priced markets .Nothing more frustrating for a buyer though to be hooked up with the lender that low balls you but cant perform and your out thousands.