This property, in particular, is in an area many local investors will not own, visit or even entertain as an investment.  

However, there are some investors here who are having a lot of success finding cash-flowing deals through off-market sources. 

Hey Eylon, Id love to jump on a call and go through this and your analyzing more.

This will clarify and reinforce what you are reading.

Factor 8%-10% for a reliable property manager (use AllPropertyManagement.com).After that, you're golden.

You want this to be your backup plan if things take longer than anticipated, you do not want to dip into personal credit cards so i would use a heloc to help with down payment but try to keep a nice available balance on a heloc as your insurance policy. 

@Sean OToole    this is an interesting post Sean.  

@Michael HoustonSo cap rates are for commercial properties so they have no use in 1-4 unit values.

Buy a house using your parents' money, then manage it for them while living there.

Simple answer - yes you can alter your funding source after putting it under agreement if you chose to use a hard money lender instead - i would just communicate with seller that hey I was going to use cash (assuming you have it from your heloc) and instead will finance some of it but let them know its not contingent on financing.