But most of my work is 2 to 3 month jobs at $40k+ if you don't want to put a couple grand up front on a $40k remodel, that raises flags immediately. 

Again, working on networking to grow my leads into more lucrative deals.I would say that my current situation is "working" although there is a lot of room to grow. 

i keep seeing:1. buy out of state rental in a solid neighborhood with long-term potential (just as you are recommending) but then...2. have one rough tenant turn that costs a couple grand, and3. give up on real estate investing, and turn on everyone involved in the transaction for not guaranteeing that sweet cash flow in month 1 lol, yea there is a decent chunk of investors who get really butthurt by that one bad unit turn and just give up.

You can refinance it into a conventional loan and that helps avoid the higher down payment.FHA also offers more wiggle room when it comes to DTI debt to income ratios and reserves requirements. 

Go with all wood if you can on dining tables and chairs etc.

A 5-bedroom will attract 2-family renters, so think about a bunk room. 

I would be OK with doing a single family and then renting the rooms if that was the only option.

Boiler room  operation ? 

If the house is listed as-is, there won’t be much room for negotiation (ie. seller concessions/credits), but you can offer a price that factors in the rehab components.

If the covenant specifically prohibits renting out rooms or STRs, you may be restricted from doing so.You should carefully review the covenants tied to your property to understand the specific restrictions.