I am new and starting out, I have a limited marketing budget.

A quick google search indicates that there may not be a limit to how much I can increase the rent:(50 ILCS 825/5)Sec. 5.

Trying to limit what a financial blow this will be.He is not on the lease at all as a tenant. 

Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work.Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now.Keep in mind that this 4 step process I outlined takes time (anywhere from 1 to 10yrs depending on the person) so keep the big picture in mind but don't let it stress you out too much.

Once you have an FHA loan you are not allowed to have another FHA loan unless relocating a great distance for work.3Now that you have exhausted your Low Down Payment Options (Portfolio Conventional and FHA Conventional and FHA) you will need to use a Standard Conventional Loan and put 20% down to get your 3rd Duplex.The sky is the limit...you could continue to buy properties and build an empire or just stop there and enjoy more free time...I have friend who quit his job and just manages his properties now."

Having spoken with a few securities attorney about it, there is no loophole: if you're a passive investor and he's managing the investment, then it's a security.The only way for it not to be a security is if you have an active role in managing the investment, however limited that role is.With that said, there are people doing JV deals every day and it's not like the FBI is going to kick down your door and send you to jail.

I see this parking spot as a common element-part of the property but deeded to no particular unit, so not a limited common element. 

Defense costs are not cheap, and this is over and above the liability limits you have on your policy.

It seems as though 804C provides the limitations on showing any preference as to who you are looking for. 803 almost seems to counteract this with us having under 3 properties until I reread the line "Nothing in section 804 of this title (other than subsection (c) ) shall apply to". 

The money down has helped drastically limit the people who walk away at any point.