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

There is much confusion about the 4% and 6% in property taxes.Non owner occupied property is taxed at 6% of the value to get the taxable value.This does NOT mean your actual property tax is 6% of the purchase price for rental property,In reality property taxes are about 2% of the purchase price for rental properties and about 1% of the purchase price for owner occupied properties.Google Greenville County Property Tax estimator and play with it and get a sense of how it works.3.

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

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

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

When panels are producing, it pumps water from lower tank into upper. 

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.  

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

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.

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