She won't do selling-financing, tenant doesn't have the funds purchase, starting asking friends/family to see if they want to be passive investors but have not had any luck yet, I have a HML I work with but need ~$50k down and points eat into the profits on such a smaller spread. 

I don't like borrowing too much and eating up my cash flow

However, the closing costs might "eat up" the difference.  

You'll pocket a bit each month, but when you have an expense or vacancy it will eat that up.

Well, they are once you get 20+ units but if you're starting with 1 SFR or 1 duplex you have to factor in how much those plane tickets will eat into your "$100/month cash-flow" (just to pick a random metric some people use here on BP).

Why not just eat the taxes?

A war zone may promise high returns. however if you cannot keep good tenants and have high turnover costs that will eat into your returns.

Reserve means nothing unless you are the only bidder.Work backwards: 230K retail5% hammer fee+$690 technology fee1% closing cost, you still need a realtor to administer the contract.Renovation: A simple paint job on a modest SFH will eat your $5K.

In my state, we are only required to disclose whether or not we know of lead-based paint, share copies of records (if any), and provide the renter/buyer with a pamphlet on how to protect themselves from lead-based paint (don't eat the paint).

More cash out of pocket, more eggs in one basket scenario and slower process to buy a second property, eventually (this includes moving out of my coop with which I have a love/hate relationship)Sell my current coop, buy a duplex with less TLC needed in my preferred neighborhood, move into the property for an unlimited amount of years, qualify for an FHA loan and use the extra cash to continue saving to purchase a second property in 1 year or 2?