$65K isn't that much so is the intent to use the funds to fill the gap on a flip; as downpayment on a deal or two,.....  3.  

And don't worry, Kris, I have no intention of doing that.

My intention is to buy a duplex to live in (with a 5% downpayment) and then eventually move out leaving a cash flowing investment property.

-Purchase price of $148k w/ the intent of buying the second duplex at the same price after  a year or so. - Seller pays closing costs.- I would actively manage both duplex units and take care of lawn maintenance. 

A tenant with a 2-yr lease has given notice that they'll be moving out to a better school district when lease ends in 8 months.Normally this happens closer to lease end, and I follow CA regulations re: advising tenant...

That is not the intent of the program though and I do not suggest that you abuse it.What type of investment are you looking to make?

You can breath in Holliston.

While I don't think that's your intent, it certainly appears that way by placing yourself on title in the first place.I also agree with @Darren Eady that 10% is not enough to keep them from walking in the event of trouble. 

It is my intention to be ready to purchase my first flip in the next few weeks, and will be concentrating on single-family houses in my area.

Just contacted the BRE of real estate here in california and they told me that Wholesaling is illegal because it is considered brokering without a license since i  had no intent of purchasing the property and am assigning a contract over to a new investor .