@Nikesh Patelwelcome. please recognize that it is very, very difficult to achieve cash flow at this time UNLESS you employ a hands-on, time intensive, creative strategy, OR a combination of such strategies. 

Unfortunately, building houses is very cash intensive.  

Don't assume that it is.If a liability claim ever arises against you for injury or death on your property - and it DOES happen - your risk management will be intensely scrutinized by a plaintiff attorney and potentially a judge or jury.

So maybe it will work out fine?

While Class C could work out if you research and find a gentrifying area, we do NOT recommend Class D areas due to high crime - NEWSFLASH: young doctor killed by tenant over parking dispute:(OPTION #3Buy rental out of stateYour $100k will get you about a $400k rental property.Challenge is understanding Property Classes and what each means for ROI.Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

It’s a bummer it couldn’t work out for them but it seems that every place to rent has it’s “hiccups” and some places are just not a good fit for some families.I can understand your reasoning.

I planned to put in money out of pocket towards renovations to force appreciation, get to the 78/22 debt to value, and eliminate PMI.I got quotes from 4 different contractors. 2 didn’t work out, 1 was very expensive, but number 4 was perfect.

So that 29k for rehab should work out nicely for my business.

Do lenders typically work with both options or would I need to find different specialized lenders to work out each option?

I have a buyer that is willing to work out a seller financing deal.