@Danny Webber thank you I appreciate the truth and if I need to take more time building my cash pile to have more skin in the game by maybe wholesaling or just working than that's fine.

Lenders want you as an owner to have "Skin in the game".

So you now need more skin in the game with guarantees of the lease,rental increases,etc. as it affects a larger portion of the building now.No legal advice given. 

Back of the napkin math may work, but if I was the seller you do not have enough skin in the game to make it work.

I’m not opposed to forming and LLC, but on the surface it seemed harder than it’s worth. 

You see, many a solider is talked into buying with a VA loan because entry into a mortgage is easy and you have no skin in the game.  

Would require new interior paint, exterior cleaning, flooring to replace carpet (when home is vacant)From the surface this looks like a good deal but I am only starting to learn about this market.

My mind is always thinking outside the box, coming up with more ways to skin a cat, expanding my mind like I never thought I could.

One option to control your insurance expenses are to insure for ACV (covers yours and lender's skin in the game). 

Hey Matthew,First off, congratulations on the surface this looks like a great deal but there are obviously a lot of swirling parts that you need to be cognizant of.