At a guess at a 7 Cap makes valuation $314K.On the other hand, if he has kept rents stupidly low and you feel you can easily raise them to $800/mo, the potential upside value might be something like $800*12*12*.9=$103K, which at a 7 cap means you could achieve a value of $700K.

I received notice last night from tenants they will not be renewing lease and may not be able to come up with remaining balance do to work furlough. 

If you have other accounts that have good balances you can share that information with them as well as they want to make sure you have sufficient funds not only for the downpayment & mortgage payments, but also for reserves.

Plus, you will be spending at least a couple hundred dollars per year in having a CPA generate and file a separate tax return.Really, I would talk to a real estate attorney and let them know what you are trying to achieve. 

They would have to transfer that loan on their own balance sheets to a non-performing asset.  

I you pay $150K and the ARV is $240K then those margins are more achievable but those properties also would be too high priced to make a good rental in many markets.

Remember conventional all go through the same underwriting and end up on the same balance sheet (one of the governments secured entities) no mat who the originator is.

Get a couple of credit cards now, and manage them wisely forever (keep your balances below 30%, pay on time every time, and never put anything on the card you couldn't pay cash for).

For some context, here's a quick overview of the situation:Bought the house in April 2019 for $245,000Me and my wife are both on the loan & titleLooking to buy a new house in June/July 2020Loan balance will be between $230,000 and $235,000 in June/July 2020Zestimate on the property is $258,000Based on the information, I have some questions about how we can proceed:If I remove myself from the loan & title, would I be eligible to use an FHA loan to buy another house?

I seem to have a different balance than you do.