@Spencer MollmanI would do a lease option where they are renting it but no money goes toward principal or interest of the property but give them an option to buy it from you working x months.

I check the SEC, FINRA, ratings websites for inside information on the principals in the company.

I'd be thinking about bringing a declaratory judgment action against BOA asking the court to declare it impermissible for BOA to add the expense to the loan principal. 

If you have another source of retirement income that will cover your expenses, you could always throw it on a 15-yr note/pay extra on principal, so down the road your cashflow from that property will be much more much quicker.2) Selling the property would allow you to take the proceeds from the sale and roll it into a steadier asset, a larger property, or move it into an existing retirement account that you have.

The question is, how do you plan on paying off the principal?

It becomes paramount to make sure you have the best available FHA (or other low down payment loan product) rate available on the market.Additionally, very few want a cashflow negative rental (especially as your first property) but if you can get to cashflow neutral I'd encourage you to think about your return as a combination of four things: cash flow, principal paydown, (potential) appreciation and tax benefitsThe first three can be quantified easily on a hypothetical $600,000 duplex.$0 cash flow + $8,000 principal paydown (rough calc) + $12,000 appreciation (2%) = $20,000Initial investment = 600k x 3.5% + $5,000 closing costs = $26,000So you'll on average, over the long term, even with $0 cash flow generate a return of $20,000+ per year on a $26,000 initial investment.

And what about monthly payments: are they simply classified as a lease expense, or is there some funny business due to the split between principal and interest since we are essentially decreasing our final purchase price with each month paid?

I am not scared to take risks as I am still pretty young (24)My ultimate goal is to have 10 of these by the time I'm 30 and then start paying off Principal 1 by 1 over the next few years (While still working my w2).

As long as the loan principal is paid in full?

If you can put together a first deal at your age that you are house hacking and paying equal or less to own as you would to rent, paying down principal and starting to build equity even without appreciation, and get some depreciation to offset tax liability on income you do make..... at 20 years old, you are WAY ahead of 99% of people your age!!