At least that would be my starting point before I created another entity unless I had other reasons for doing so.  

@Shella Sanders Did people site their reasoning for not purchasing your 15k house?

I assume the reason why this was addressed this way is because it was less than 3 weeks after the quitclaim was recordedChecked again today on 7/23/2018 on the Cook County Treasurer website.

One probably dumb question though: is there a reason why you all say pay it off at the end of the month?

@Edward Mahoney  You're correct that FHA is owner occupied and as memory serves me, it's supposed to be at least 12 months unless there's some verifiable reason like a job transfer.Don't fake the owner occupancy bit. 

In addition to the above, once you put your apartment online for rent...you will know if it's reasonable or not based on the number of inquiries you receive.I just placed my 1/1 w/ Office online and received 60+ inquiries within 2 weeks.

If you are doing one or two flips a year, maybe not - although for asset protection reasons it would be better to make them in LLCs (plus there are other tax considerations).

This doesn't mean you shouldn't offer but have reasonable expectations on chance of acceptance, my gut puts your odds of getting the property at 10-15%

- Is there any reason this may be a bad idea or anything I'm not thinking of? 

I agree with others that he is trying to hide something, and hoping you'll overlook the background checks by figuratively waving a fistful of cash in your face.Many good reasons mentioned above to avoid a tenant that wants to prepay all the rent.