Residential performing notes can even be a pain with a custodian controlled account, because they typically charge a fee for every payment your loan servicer sends in. 

lost $10k to the contractor that made an impression of work and disappeared ( power washed half of the house, demoed kitchen and cut half of the lawn shrubs ;D) .

The reason that the current owner is selling it at such a low price is it's going to be a major pain handling the eviction process & turning the unit over after you finally get this dude out of there.This right here is how we make the big bucks in this business.

It was a pain mapping out a system to manage such a demanding tenant pool. 

They pass on inspections to be more competitive, if that need disappears, then people will choose to do them.

Is it less of a pain if to get a second property with an FHA after Homepossibble versus refinancing out of a FHA to acquire a second FHA?

That money didn't disappear, it's just in a different savings vehicle.

. $200 per month is a pretty thin profit margin for a duplex, and that "profit" can disappear in a flash. 

These are useful for low-use various building supplies that can be affected by moisture, stuff like drywall tape (especially the composite tapes), fasteners (that weren't sold in the big buckets), various hardware (still in clamshell packaging wherever possible), any sort of rubber or vinyl hose, etc.Larger supplies (rolls of tubing and electrical wire) go in garbage bags.Sheet good like OSB, plywood, cement board, and drywall are a real pain.

Be cautious if your planning on making a second illegal unit, I can't emphasis how much of a pain it is if the city finds out.