How needs light preparation for STR mainly paint and furnishings probably revenue neutral first year.Challenge: I am looking to finance the deal potentially 10yr arm 20% down.

Condo is in FHA loan(5/1 ARM) and second one townhome is 30 year fixed low interest rate. 

This is going to take time, lots of time, but should be a real shot in the arm for investors.  

We are not eligible for any FHA loans that offer 3.5% considering we are within arms length of the seller, it will take us too long to raise the 15% needed since we are not eligible for FHA.Our ultimate goal is to put a little money into our parents pocket, get them out of their mortgage, as well as repair and update the home as quickly as possible and building equity into the home.We are trying to view this as an investment purchase and we would like some feedback on creative ways to solve this problem.We live in Ga so please advise state laws.Thanks in advance for your help! 

Go to IREM.org search for several ARM certified property managers.

Armed with that information, you can approach your preferred lender to see if it will give you a break.The mortgage industry is competitive and many lenders do have wiggle room in terms of the fees that they pass on to you.

Here portfolio lenders are better on Jumbo and Arms, but not the rest. 

After all, adding back an explicitly stated depreciation seems to be a no-brainer, plus my example shows that the actual expense deduction was a bigger tax deduction anyway. 

I bought my first home in 2011 for 45k with an arm.

If it is I don't think you can use the money to fund your own business endeavors from your 401K,  it has to be an arms length transaction.