Unless you're going to be putting in 6% of the early mornings, late nights, stress, sweat, injuries, and headaches as I had to endure while renovating a property; you're not getting it.

Had sweat in the game.  

These would cost him nothing but time and sweat equity but would give him the education he is seeking and eventually money when he is able to start flipping properties to other investors to build his cash.  

Though your HOA fee seems reasonable, you still give up control and it can go up or you could get hit with special assessments if it is underfunded.So, if cash flow is not great, and appreciation isn't likely to be great, the only thing that leaves you as a return is mortgage paydown, which is not to be ignored, but will take a LONG time to add up and I think you could do better.So, I'd consider downsizing to a smaller, less expensive house (which sounds like your plan anyhow), where the numbers as a rental would look better, without a HOA, that is cosmetically challenged and maybe a REO so you can buy at a discount and put in some sweat equity, smallest most rundown house in a solid neighborhood, and eventually (maybe if/when the market dips next) turn it into a rental and buy your next place but fix it up and save like crazy in the meantime.

But aside from that, if you're willing to put some sweat equity into a 4k house then you can make it happen.

Maybe you contribute sweat equity on the rehab in return for a modest finder's fee and the opportunity to learn. 

Most properties that cash flow in this area are probably those held by investors who have put in at least some sweat equity and probably didn’t buy from a turnkey provider.  

Of course the more sweat equity you can put into the property yourself, the higher your profit margin.

Or simply find a partner who can obtain the loan and you split 50/50 with him/her in exchange for some sweat equity of your.

I have the sweat equity covered.