However, many may argue that being hands-on (with management, not necessarily with repairs) with your first investment property is vital.

How can that be, though....YOU with all your credentials and experience haven't come across a single person who's established their wealth, or a portion thereof, using IBC?! 

You have to remember, this is not going to offset your entire management fees becuase not everything can be funneled into the 401k, only a portion of it. 

Local Grants and IncentivesIt's vital to fully investigate the Philadelphia real estate market, comprehend local laws, and maybe consult with local real estate experts before implementing any approach.

Tenant starts sneaking them in, broken down cars start showing up, they stop paying their meager portion of the rent, houses get trashed. 

On the other hand a line of credit might work for the down payment, but you will likely want to look for a private or hard money lender for the fix and flip portion and as a beginner, I would expect to put between 20-25% down and likely a bit more for closing costs and reserves. 

Leveraging current equity by refinancing the property and taking out a portion of it through a cash-out refinance is one such tactic.

People hate to pay for things upfront so here is what I think will happen:A portion of the people will go directly go to the listing agent for showings and writing offers.

With the lease to purchase the seller more than likely would ask for a deposit that can be applied toward the down payment when the actual sales take place or the seller can "finance" a certain portion of the down payment.

Rent to income can only apply to the portion of the rent not covered by the voucher.