The less you can afford the greater the difficulty. 

Both difficult.  I

At the same time, I know that many people under estimate the difficulty of long distance investing, especially as beginning investors. 

They have more skin in the game then you do.Make sure you get clear title.

However, the loan amount that I will be taking out will be based off of the property price and rehab costs(90% of each will be a loan and 10% will be my skin in the game).

When running the numbers I am having difficulty plugging in the rent, tax, and water/sewer numbers.

Seller owns property free and clear and you guys sign a purchase agreement for 100KYou put down 10% which is 10K to the seller(skin in the game)Your hard money lender put in 90K, which is the rest of the money due to seller, to get to that 100K owed.Then Escrow closes and your seller has the 100K owed to him and then you pay the lender who put in 90K monthly interest only payments till you resell/refinance the property paying off the 90K owed to him.

@Andrew PostellYou mentioned the difficulty in finding a lender who would work a VA loan for a multifamily construction project. 

However, I read the following in the FAQ and am having difficulty understanding.. 

You will need to come up with the down payment (lenders want you to have skin in the game).