I think that is where I am going wrong.  

There's nothing wrong with seeking concessions if there are issues that arise in the report, but using this as a strategy will garner you a reputation within the community if you are repeatedly going under contract and then seeking large re-trades. 

Is my math wrong or is there another better way to do this?

Correct me if I am wrong, investing in Dubai's real estate is better than USA's real estate.

I could be totally wrong, but I am just looking at it from a practical standpoint.

You can't go wrong with either but for someone starting out I would recommend Hospitable.

EDIT: Just realized I read that wrong and thought the poster was the seller. 5% rate and 5% down is a sweet deal, take that if you can get it!

The main reason is other buyers who are better able to pin down operating costs will either outbid you because they have their costs right, or you'll outbid them because you have your costs wrong. 

There's no right or wrong way here.

It is always better to start with a multi-unit 2+ so that if something goes wrong, you still have one tenant to cover necessary expenses (mort, taxes, insur, etc).Also, major renovations are not a great idea for starting out as others said, especially out of state.