there are just as many loan scammers trolling BP as craiglist and facebook.OP  just don't give them any money up front.. open escrow with your attorney ( if its an attorney closing state) and let the lender bring his funds in to escrow.. the lender should prepare his own note and DT or mortgage or the lawyer should.. you can talk terms.. but just don't pass him or them any money and make sure it all goes through neutral escrow..

In that case the agent should stay neutral to both their clients and act as a transaction broker (this is at least the case in CO, your state laws may differ).

I have almost no experience/knowledge on flips/203k (would owner-occupy at least a year) and almost all single-unit properties in the city with appreciation potential I could afford are condos.I will admit that I've focused almost exclusively on DC, but it seems that 2-4 unit properties are exceedingly rare elsewhere.Do I need to shift my expectations (near neutral cashflow multi-unit) and perhaps accept just getting a cheaper single-unit outside the city?

You got some good inputs from BPers on how to spend $2,500 to get your REI business out of neutral and into gear.However, below are some links to get your REI education started, as that's definitely needed to get your business up and running quickly.Your time here will be well spent. 

Do you own evaluation.Lots of folks buy rentals that are cash flow neutral or negative.

Or at best, "dual agency" or "transaction brokerage" (your state laws may vary) - so if a broker that gets 10 - 12 listings from a bank - all of a sudden (if you have that listing broker OR SOMEONE THAT WORKS FOR THEM, write the contract) - they are then magically supposed to become "neutral" - I don't see in the real world how that happens!

If it appeals to you then it may very well work for potential renters with the exception to decor .. staying with neutral colors doesn't always have to be used , instead try decorating with native decor .

What needs to be done...As of right now this property needs some work in order to get it into proper rental condition.CENTRAL AIR ( I'd like to get rid of all window units )REPAINT ( to a more neutral color, another words NOT PINK )REHAB ONE OF THE BATHROOMS COMPLETELY ( Average size restroom )I would like to do a cash out refinance on this property and take out 80% of the appraisal value in order to cover expenses for the updates to the property and to have some capital to invest in another single family home or possibly get into flipping with my family.Again i'd really appreciate feedback!

I'll accept a neutral cash flow in exchange for that appreciation. 

Those are cashflow neutral aspects.