The fact that the one separated system is paid for by the tenant leads me to think I can pass along the cost, even if I have to reduce rent a bit such that I'm partially passing along the cost. 

I agree with Pierce as to his appraisal techniques, but your negotiation skills are not a value that reduces a lender's risk, if you could buy it at that price does that mean that no one else could buy it at that price if it went to a foreclosure auction?

BUT, I have to recommend against quitting your job out of anxiety to go out on your own. 

The only thing I'm bringing to the table is my next monthly mortgage payment (PITI), which is a tad lower because of the reduced rate they're also getting me. 

Do you know of any way to get around or reduce the surrender charges ?

. $130/monthCapex $270/monthVacancy $130/monthGas $85/monthWater/Trash $160/monthFinancing: 20% down at 4.65% for 30 years PI $700/month24% COC Electricity is tenant paid and the plan is reduce rents to 610 and pass the other utilities on to the tenants as well.

From a future DTI standpoint I don't believe that you can use the income generated (by roommates) in order to reduce your ratio, even if you have two years of tax history.

HUD  had just reduced the price and it was a good deal if the house didn't need a lot of work.The inspection period was really a joke.

If I keep home I will keep having rental incomeIn case I do - A.I get 500K i can reduce mortgage on my current primary home which is jumbo - so it will become conforming and may be invest some money in tax managed balanced funds.B.

HOA fees reduces your cash flow and your pocket in case of vacancy.