those 3000 jobs would get coffee and need dry cleaners and cars repaired etc. 

You're using a company to manage tenant phone calls/inquiries and then send in vendors for repairs.

In a text book case you'd buy a property for half of its ARV (after repair value) and then spend 25% of ARV on rehab and generate 25% equity.

Set aside reserves for unexpected repairs or vacancies.

Getting Fair deals on labor and repairs comes from developing win/win relationships with contractors.

Paying off the notes, working to pre-emptively make repairs to capex items before they fail or become a major issue think roof, HVAC, and foundation.

. - This will allow low down payment and the 203(k) allows repairs to be financed into the purchase mortgage.- The 203(k) will allow you to bid on properties that need repairs that won't qualify for a traditional mortgage => less competition => better purchase price.You will need to find a great local contractor you can trust to supply the required bids to qualify for the 203(k).- After closing, you can do some of the work yourself to save money, but the program doesn't allow you to pay yourself.You will want to buy a Class B property, maybe Class C+, in an area that seems to be improving.

If we rent the unit at $1,425, I have an estimated monthly cashflow of $302 (rent at $1450, cashflow is $325) I DO include vacancy, repairs, and cap exp in my Box2 Expenses.

I left that job to join Roche Tissue Diagnostics where I repair medical instrumentation across the Midwest. 

This isn't always the case, but in general, I've found Section 8 homes tend to require more frequent minor repairs.