Karen hit the nail on the head.

I got nailed for this in my early days in Oregon lending in states that did not require a license..So if that's an issues it may be preferable to set up the company in a state that does not require a license . 

Don’t hire a property manager until you have you nailed down your own management style.

I could nail down my criteria but I am not worried about that just yet.

Foreclosures are public record and used by everyone in town trying to nail the deal if the property has equity. 

You nailed it!

@Caleb Heimsoth you nailed it, I thought it was marginal as well.

The only thing I can add, since they nailed it above, is renting out rooms?

Also factor in grounds maintenance, which depending on your area may include snow removal and/or lawn care and landscaping (this can run a few hundred dollars a month depending on the size of the property).I always ask sellers for their P&L statements for the last 2 years which should show any major repairs and expenses.Regarding financing I think you nailed it and should look for more traditional financing elsewhere assuming you qualify.

We're hoping to use this cash as a down payment to get our first rental property and since we built the house to ourselves, nail by nail, we have another $70k in sweat equity that we could probably use for a HELOC to use as down payments for additional properties.