Should I continue to pursue the original house deal by deducting their estimated repairs?

The struggle comes when you plan to sell, pay close attention to how the bank would treat the loan in the event you would sell.Even though its a bit more work, banks are typically open to these loans as it provides them with additional collateral in the event of default.  

I've found an off-market property that would require $175k purchase, $35k down, $20k in repairs, with a conservative ARV of $235k. 

So if you see a foreclosure, it's not a typical thing, and the people involved are not typical. 

If I had to leave a takeaway from this post before getting too far in it would be that whatever goals are had you have, we have these goals for a reason and typically it does not go exactly as planned but even if it doesn't go as planned, we can pick up where we left off and give it a fresh start.

Well even if the rent is equal to the mortgage, you'll still be in the negative after repairs, CapEx, vacancy, etc.Why would you specifically be thinking of investing at a negative cash flow?

Conventional loans are typically in your personal name, while investment property loans, like DSCR loans, will need to be in your LLC's name.

There are more buyers for SF homes, but Multifamily properties typically cash flow better as you mentioned. 

Small businesses are typically valued at a multiple of SDE.

Experienced investors typically value properties like yours by analyzing cap rates, cash-on-cash returns, and income growth potential.