I know that my COC my be lower, etc but my main concern since its my first property is being cash flow positive.  

Do you buy homes that do not satisfy this rule, or do you just make lower offers so that you adhere to that rule?

I'm looking to start off in areas with lower costs coming in, preferably under $100k single families but definitely under $200k. 

The reality is many lower rate offers have a higher price or are $hit properties, but not all.If you are paying extra for owner financing make sure that the discount rate easily justifies the purchase price.  

Hello Vivian, there are a lot of opportunities to invest in Tulum downtown, the beaches are occupied only by hotels and restaurants, this is the best time to invest in a pre construction unit at lower price than the finished units with a difference of 25 to 30% bellow market price, check this website to view some opportunities www.tulumrealty.net

In terms of the second scenario, the upside I see is the option to get a different kind of loan (say, FHA with a lower down payment and other assistance programs for K-12 educators like me) since I'd be getting a new primary residence instead of a second home.

By year two, he refinanced to lower his rate and dramatically increased his cash flow.

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.

If rates drop in the future, refinancing again could lower your payment, but it’s good to make sure the numbers work now just in case.

It is in a northern MI Downtown area (opp zone) in a county seat with 2 hospitals, had it re-zoned to mixed use, and is considered blighted which makes it eligible for MEDC funding of up to 50% of project cost.It is 8k sqft (4,000 each level) with the lower level being a walkout (top level is street level with sloped drive down to the rear of the building).