He owes 183k ruling out keeping the existing loan in place (right?). 

You have to set rules and follow them, otherwise tenants will walk all over you.

Nathan, FHA is a great way to go and as far as the one year rule... 

In some locations, this sort of lease back arrangement has ended up in front of a judge, with the judge ruling the transaction to be a loan in disguise.

.) , so let's go with the second option (my budget is a bit higher but not that much), I expect a net cash flow around 10% (after the 50% rule) and I am more of a buy-and-hold person which I believe makes more sense when investing from abroad... unless the market picks up and I'll maybe sell it in 5-10 years to re-invest....1031 I have heard the term but I am not familiar with it...

If its non refundable I stick to that as my rule.

I want to avoid private investors, but I have not ruled out the option entirelyMy question(s) to you is:1.

New rules/regulations.

First, I'm fairly new also, so take anything I say with a grain of salt.The 70% ARV rule that was laid is really good.  

It's like the 2% rule, but for cities - helps you weed them out.