. #2 sounds a lot more complicated if you want to do it right.

Or you could use the title company to handle the escrow and ask them if they would draft up a simple contract for you as part of their service closing the property.Unless this is a complicated sale there are also simple templates on line  that the title company can work with. 

Look at that map and determine if the property falls within their district or not. i think you are making it too complicated.

But your refi may or may not give you the great FHA rates you mentioned.To me, I see these deals as pretty complicated and tend to shy away from them. 

I'm in a possibly complicated scenario, so any feedback or help would be very much appreciated.I'm looking to purchase a 4plex with an FHA loan, but after walking around the property there might be some issues meeting the FHA's minimum property standards.  

It can often really affect your resale value with the tenants  there and showing the subject too with covid complicates the situation even more .

If you form an LLC and go for a loan, first off, the LLC has not income or assets so will have trouble qualifying, second, you will be in a commercial loan which will raise the rate a point or two and have a shorter amortization and probably a balloon payment.This may be a little over complicated, but if it were me, I'd do the loan in your name, put the house in a trust right after you close and make an LLC the beneficial interest of the trust (basically just run all the expenses and income out of the LLC because a piece of paper in your filing cabinet says you can).

One of the biggest complications to your location is time and timing, and the foremost way I see people thriving in this context is through relationships that can allow an agent or partner stateside to "run fast in your authority" once they understand your criteria and you have established trust.I hope this is useful in your search!

I have been told that it can get complicated at the sale of the home, because you will have depreciation re-capture. 

Getting complicated.