They originally wanted 360k, but the mortgage would have the property running negative for the foreseeable future until all renovations are done, which I won't do. 

Adjustable rate mortgage, 10% down.

And in America slum housing is not the order of the day it does not exist. 

By the time you factor in insurance and any cap ex....it's already a loser...even if you aren't carrying a mortgage.  

What I mean is, some investors look strictly at cash on cash return, some look at cap rate, others just want to make sure their mortgage is covered.

If the rent payment covers your mortgage and you have a good tenant, why would you get rid of them to take on the expense of unit turnover, because you will have to do one, and the 5% vacancy loss just to increase your rent $150 per month?

I purchased the home with a conventional mortgage and used the grant to help with downpayment and closing costs. 

Now a "Foriegn National Mortgage" has similarities to those mortgage types but you will pay a higher interest rate and be required to have a higher downpayment as well (usually about 35% down). 

My mortgage brokers but I’m not ready to reveal them just yet.

Have you thought about buying a duplex or other MF property where the renters can help pay the mortgage?