Depending on how much cash flow the propertues produce, we may flip more houses to save up for additional properties as well until we can live off the cash flow. 

I am having trouble structuring this deal, and pitching to them how I am/should be involved.  

I dont want to let go of the house or get into trouble at the same time? 

You are considering that for the Long Term, the Millenials are not going to be able to have the JOB's that produce enough Income in order to Buy SFH's.

There are a lot of off-market deal opportunities which may produce better results than using zillow, realtor, MLS, etc.Be aware that with an FHA loan you will be paying mortgage insurance throughout the entire span of the loan, unlike other loans where the mortgage insurance stops after a certain percentage of the principal has been paid off.Prepare yourself with some financial homework on the properties you are looking at and how much ROI you are going to get and be ready to pull the trigger.Also be very aware that Massachusetts is a tenant friendly state with almost seemingly unfair laws 'against' landlords so it is best to be aware of the Massachusetts Tenant and Landlord Laws and have a very good tenant screening process. 

I am having trouble defining what makes a hostel a hostel and not a hotel.

Also, only having $10,000 might run you into some trouble because lenders tend to want you to have some cash reserves.  

Like I said I understand that he said the client was informed of the 30 day wait and no he shouldn't have put the deposit down if he wasn't in the position to wait the 30 days, however do you think it would be worth the trouble of fighting with the tenant over the $850 some odd dollars or rejecting the tenant and keeping the deposit as he previously asked?

I don't need the cash this new flip will produce.

I do qualify for a FHA for the first property, but have trouble getting a hard money lender to finance the construction of the second home.