In theory, this is what I'm proposing -- I'll fund 20% and cover closing and rehab costs.

Will monthly rent cover all expenses and provide additional funds to set aside for reserves?

Furthermore the attorney said I'd have to cover the tenants lawyer cost if I brought them to small claims. 

Consider a duplex or triplex, live in one unit, and rent out the others to help cover your mortgage.

This is a garden home and the yard is fenced in with a 10 foot privacy board in board fence The neighbor stated it was making her violently ill and that it is a health hazard for her as it was coming in through her vents and or windowsshe has also been known to harass my last tenant, and sending us text that trees are too close to her home telling us that we need to cut it because there were branches over her skylight and she claims that it was scratching the cover. she called the city when the last tenant had to sell all of her items at an estate sale due to loosing her job and having to move from the property and cited that she was in violation of city ordinances due to not informing the county of an estate sale.

This is how we make a living and cover our bills . 

You will have to switch from a homeowner’s insurance policy to a landlord insurance policy which covers rental specific risks.3.

The unit I live in can get 3500/month in my area.I can refinance to get rid of my FHA and PMI on MF 1 and use an FHA to get into MF # 2.MF 1 rental income will cover my new mortgage payment with cash flow and I can grab my second MF.Any thoughts?

As someone who is not familiar with the Philadelphia market I would strongly advise against relying on any wholesalers opinions or representations, New Western or otherwise.

Current lease agreement says tenants will cover utilities.