I've noticed that in some smaller counties, there doesn't seem to be much investor activity so it's more reasonable that you can find good deals but $150k strikes me as extreme.

Then when you get new tenants you train them from day one that they will be given two strikes and then receive a non renew notice.

This strikes me as arbitrary and in bad faith. 

Very likely.Note: Even if you only own one rental unit, you probably still have a business if you are not completely passive about managing it.Bottom line: The tax law favors you in most grey situations, and this situation does not strike me as all that grey.

I can then continue flipping and can take my time if I continue to strike out w/ contractors. 

I just went to one last week at Lucky Strike in Assembly Row. 

Are you going to set the strike price upfront or as a % of the Sales Price (after expenses). 3.

Which windows strike the balance between low cost and good quality in your experience?

Memphis has been a really solid area (some say even recession-proof), but you're in striking distance of a Alabama and other great opportunities...and short-term rentals in Nashville are doing well for some people I know. 

Sometimes swinging for the fences right away without hitting the doubles results in a strike-out.Sounds like you'd have the equity to possibly get the down-payment you needed, through a cash out refinance - however I'd make sure you are really sure about the large purchase and its efficacy given where you are.