The bank/lender will ask for all the financials on the property, check the income verse expenses, and many different aspects regarding the building a the project income and the historical treads in the area of the deal.You will not have to provide pay stubs, credit checks, employment checks, debt ratios, or anything the banks do while looking at a SFR deal.

If you could, please describe how you define a B/B- neighborhood and a few commentators could probably tell you price points you are going to pay to find that.  

good concept Bryan, flipping vs buy and hold are keys to how wealth can be generated by using two different methods of investing aka envesting as i like to say, i'm a newbie in this industry my plan is to buy and hold rentals and later refinance the property and reap the benefits of the cash flow to purchase rehab and flip discounted properties that i find along the way, my strategy may be different than most but most of my educational coaching suggested looking at every deal as if it were flip and or rehab, i agree with Bryan, if i can get the cash flow and equity that buy and hold offers then that is the strategy that works best for me, but if i run across a flip/rehab that is worth my while then i execute accordingly but leverage is a important aspect of the buy and hold strategy will be implementing in my world.......good luck on your investing journey

Usually properties that bring in a lower rent also have less overhead when it comes to upkeep i.e. no HOA's, the property is smaller in general so repair costs are less, and so on. you really need to look at the overall investment and factor everything in because in my opinion rental price is just one aspect.

:1)Find an investor who would double as a source of money for down payment and a cosigner2)Use an FHA loan (3.5% down if I live in a unit) to buy a quad-plex3)Use the 203k aspect of the loan to improve the quad-plex and force appreciation in the property4)Refinance in a year or two to a regular loan and pull equity out to either pay off my outside investor or use equity for another down payment on another quad-plex5)Repeat With this plan, I believe I will be able to cash flow from day one because I will be able to rent out three units to college students around campus who are willing to pay higher rents than most.

What usually defines the selection for us is the flue. 

I am just getting started in the investment world and have always been interested in the tangible aspect of real estate.

Account Closed please define what an investment property  would "look like" that you would like to purchase. 

Don't trust me though look it up and I assure you will find something similar what is defined as liquidity.  

What other aspects should I be considering to avoid IRS considering it as a sale?