I wouldnt give any consideration to what the seller needs in order to break even in determining the purchase price.

i say that not to discourage you, but so that you have a realistic picture of what to expect.as @Travis Timmons alluded to, you need to be in a strong financial position to even think about starting to invest. 

Quote from @Shaun Ortiz: Hi Jason,Thanks for sharing your journey—it sounds like you’ve gained some invaluable insights from your experiences, even with the squirrel tenants (that’s definitely a story!).

He even chatted with me through this forum (Bigger Pockets) and was very encouraging that you can even do it just with free stuff out there.  

That is what we thought, but are being told we have to pay SS and medicare on this now even though it is "deferred." 

The two value propositions are not even close.

I am assuming that even if you strucutred it with a higher purchase price (85% of value) and pre-paid rent it would potentially still be frowned upon.

Quote from @Joshua Janus: Cleveland, Ohio is a great market to focus on for cash flow and specific pockets have gone up 2x and upwards of 4x in the last 5-10 years even!

Plus the added requirements around getting drawings and general contractor for even adding a tiny closet.

Or should I use the new Oregon address for the LLC even though I don't yet live there?