If your partner forgoes pay for the rehab and property management, you can use that to buy into the partnership until he has more cash to contribute.

My husband and I have lived in Wichita, KS for going on 3 years now.

Hard to believe in the 70's and 80's and even early 90s, you could have bought that whole area up for a song.  

It could help them defer capital gains and forgo the hassle of 1031 exchanging into yet another property, increase their overall return (typically you can get a higher price than cash, and you are making a return on the outstanding principal balance), and help for financial planning purposes for life and retirement.

I love my investors and try to make them money at every chance I get, even if it means forgoing profits for myself in some cases. 

When selecting an agent... rather than for going for an agent that knows a bunch about Real Estate investing, select an agent that is hungry and NEEDS your business.

Would you recommend that I forgo the 203k loan in order to increase my cashflow, or use the loan to improve the property and potentially increase rents in the future, while dropping my current cash flow?

I better write a song about it.  

as for going to the auction i have no experience with that at all.

I am really glad I found this forum to give me advice for going into the industry but if any of you seasoned members on here could give/ point me to some good advice or resources I'd be very grateful.Thanks!