@Mark Sullivan It is a dietary supplement business.

You do some upgrades and sell it for 110k after 2 years.30 year mortgage:You've gained $2,883 in equity from mortgage payments, you've made about $4800 from cash flow, for a total of $7,836 just from cash flow and equity from payments.15 year mortgage:You've gained $8767 in equity from mortgage payments, and you've had $0 from cash flow.I also have to say I'm not sure how taxes will effect these numbers, as I've purchased 2 of my 3 properties this year, and I converted my own home to a rental this year as well.I'd say if you're planning on holding the property for a long time, it'd probably be better to have the cash flow to be able to either re-invest or to supplement your income. 

Even if you don't use what you learned directly you still have the life experience not everyone has and the fortitude that you got it done. follow your dreams and make real estate the supplement or fall back on plan that you incorporate into being successful.

@Matty P.In general, yes, closing costs are higher than a regular FHA loan.You still have to pay MIP upfront and monthly like a regular FHA loan.However, with a 203K you will be charged supplemental origination fees.

I think I want to persue a buy/hold approach - mainly because I want to build a retirement equity portfolio (preferably leave my 401k and transfer funds to IRA for investing) via real estate, and to have the cashflow from these rentals as a good supplement to the income I have now.I hope in the future, if things work well, to be able to persue real estate full time like the pros :)

Is it your present business plan to supplement tenants rates based on whether you like them or not.

I was looking for additional capital to supplement my private lenders.  

I'm a teacher and will need to be supplementing my income big time in Montana.

Once you start supplementing income with rental income your tax returns get messy for some lenders and they dont want to spend the time needed to make a deal work. 

You first have to do reverse engineer to figure out your future income when you retire and figure out the gap or supplement needed...