I am planning on going to an auction just to get a feel for it and see the bidding process.

Hey @Matt Brown, I ran some quick numbers based on a $2M purchase and it looks like you would cash flow closer to $1000 out of the gate. 

I ran into the same issue when purchasing a new primary residence. 

Looking for any help or tips everyone may have on going forward!

According to the website, Certified 203k Contractors also have sufficient financials to pay for the start up costs and ongoing expenses associated with 203k.

On that note, my Fiance was putting in offers in Pcola for another place and even though we had a super strong over asking price offer they went with someone else due to the worry that the appraisal would come in low (For VA you can't buy a property if the appraisal is below your offer, conventional you can just bring that extra cash to the closing table if you want but VA wont allow it, so you're kind of at a disadvantage now if you plan on going VA).

In my opinion, a CPA knowledgeable about the asset test rules is a better resource than an attorney in terms of ongoing compliance.  

For the tenant w/ an ongoing lease in my experience you have to honor it until it expires.

I ran across a property in my vicinity that seems like a good deal, but I have reservations.

My wife just found a property on Zillow and I ran the numbers as a short term rental.