Typically starting with a smaller rehab budget of $50K or less (maybe a max of $75K) and avoiding a 1 to 1(or higher) ratio of purchase to rehab costs is recommend when you are first starting out. 

The best I've seen for STRs is 80LTV on purchase and 75LTV on cash outs. 

Self-proclaimed Section 8 guru's online claim to do the latter and then find Property Managers after they purchase the property in whatever state, but I don't know how real that is. 

What's the purchase price? 

I then found 3 properties from wholesalers in areas that I invest in regularly and purchased the properties with a hard money loan.

I found a house that I like to purchase in a great neighborhood and the exterior looks great for a 1922 stick built house.

If you had good credit (670-730 range), you have 20% to make a down payment, and sufficient income to qualify for the home you want to purchase - Would you choose the FIRST-TIME HOME BUYER or CONVENTIONAL purchase option...which would you pick and WHY?

For example one property I purchased 4 years ago was a two family townhouse. 

What this leads to is higher purchase prices but also higher rents in these areas. 

I have helped many new investors purchase their first property in Memphis and LIT.