Keep in mind normal wear and tear you can't charge for and carpet cost is pro-rated for the life of the carpet which is 7 years.  

I now live in a normal house that still meets my needs and I freed up quite a lot of money by doing so like you are describing.But if this new house doesn't have a 2nd bathroom and you really need one due to your kids, you will hate that and be kicking yourself later. 

Take a security deposit and treat it like a normal rental.Ensure wording is included that would include clear stipulations on what will happen when things close or if for whatever reason the deal falls through.

I have been doing a good amount of research and am considering taking the course since I have a discounted rate for 1/4 of the normal cost. 

When I was in Texas, it was normal to have a deposit, fees every month and an up front non refundable.

Was originally planning on purchasing and occupying a duplex in the city with a 3.5% FHA loan, but my wife and I were not willing to sacrifice commute and lifestyle (lived in a basement, not willing to do it again) to house-hack, so we ended up signing an apartment lease for another year.After receiving some inspiration and anecdotes from coworkers recently, I've recently become interested in buying, rehabbing and renting out a SFR in NW Indiana or SW suburbs around Joliet, IL. 

But I also put a lot of emphasis on "lifestyle value" as well while you are living somewhere for 5-7 years.  

Lately though normally the older generation 50 and above have been very negative about investing in real estate because of the future market crash that they say is “very soon”.

Invest and buy based on fundamentals, interest rates, location, your lifestyle choices etc.

@Aaron OCallahan this was just a normal offer from my realtor.