There are lots of different types of renters, employers, property types.

For those just starting, investing in rental properties may offer a more substantial financial growth pathway through cash flow, tax benefits, and mortgage pay-down facilitated by tenants.In contrast, areas with more favorable rent-to-value ratios (like some parts of the Midwest) might make buying a primary residence a sensible start. 

P&L sounds like it might be for self employment income.   

If we crush the rehab I think we can even push closer to 200Cash-Out Refi Amount: $131k (75% LTV of the conservative 175k figure) Profit if done as a flip: 60k. (175k - 115k purchase price & rehab)Cash Invested: 18k (This accounts for $7,500 for down payment to lender, $2,000 in EMD to seller, lender fees, inspection, insurance, title, projected 3 months holding costs at $1000 per month)----------------------------------------------------------------------------If I do it as a flip, from what I understand, I'll be hit with a ridiculous tax bill (24% short term capital gains + 15% self-employment tax), leaving me with roughly $36k after-tax profit. 36 - my 18 invested leaves me with 18k increase to my net worth.

Maybe I'm not communicating clearly, I am employed I was only temporarily laid off.

From there look at other factors like what is the alternative to renting at the subject property, is it close to shopping or major employment centers, parks etc..?

In the IRS Private Letter Ruling that caused people to worry about this they said they would consider it subject to self-employment taxes (schedule c) if you provide services above and beyond.

In the Raleigh Durham area we also have a strong university system that employers can draw from to support their employment needs. 

Are there any big employers up there? 

Good schools and low crime, near interstate access but 15-20 min drive to major employment hub may be a Class B area.