As far as financing, I have considered  1) an FHA loan with a cosigner, and 2) going off market and approaching many owners about potentially seller financing.Any and all feedback, advice, and info on potential pitfalls would be appreciated!

Market exposure- what is the existing density of the rental units, what is the potential existing market, what competition is coming online?

While I’m just starting out in real estate, I’m determined to build equity and achieve financial freedom through thoughtful investments.Here’s a little about me:I’ve been exploring wholesaling and land investing as potential entry points but haven’t made my first deal yet.

Sponsor is realistic about current market conditions, and is humbling themselves on current portfolio, while also realistically appraising current environment as a potentially better buying opportunity than the peak 3 years ago. - Sponsor learns from mistakes.

Costs may disqualify the opportunity even though in theory it can be converted.I believe its important to set expectations and if this is an 8 bedroom RSA5 home just as an example you very well could be looking at a building that's obsolete and again even if it is RM1, depending on the costs of the conversion, still potentially obsolete.

Also, be sure to consult a CPA about the timing of transitioning properties to an LLC to avoid potential complications with financing or taxes.Take time to compare multiple lenders and products that fit your strategy.

Any broker who knows high potential opportunities for seller financing in Minnesota?

Is $175 worth losing potentially thousands. 

I'd love if the property would cash-flow after we move out, but the neighborhood and appreciation potential is the biggest concern for me.

Your first Multi with those savings and income are going to be a learning experience  (In a good way) However do not go in with a massive cashflow expectation.Some Realtors/Sellers might sell you on unrealistic potential high rents and will be adjusted to the selling price....so do your own research.Are you planning on living there as well?