So what we have is two people paying rent and utilities in a home without a lease, contract, or any proof of an agreement. 

I have already read through The Ultimate Beginner's Guide to Real Estate Investing and am currently reading the Book on Investing in Real Estate with No or Low Money Down but would appreciate any advice anyone has on other reading material, videos, articles, or seminars I as a newcomer can learn from.Thank you,

The cost of land, labor and material are too high.

I have a small (less than 50) very targeted list of properties I want to send direct marketing material to acquire the SFRs. 

It would exhaust a material portion of my own liquidity for the money down and closing/inspection costs, but I'd have a much more affordable loan than HML and this 2-stage approach seems simplest to me. 

I would be very reluctant to pay much above the 70% number for a deal.on your first flip, you almost certainly will pay twice as much and it will take you twice as long to complete as expected.IMO the market is really tight, maybe those who are paying 80-85% have cheaper capital, or are licensed real estate agents, or are doing enough deals that they are getting discounts from contractors on labor, or are able to get discounted materials. 

What software do you utilize to find out all of this info?

@Phillip Tamez, I determine the mid-range rent utilizing comparable rentals in the area.  

If my offer is accepted we will do the rehab and market the house for rent starting at $750, no smoking, no pets( if renter insist on having a dog I will add $25 on top of base rent and a non-refundable pet deposit of $250)tenant pays all utilities and does yard maintenance.So, as of now I’m projected to net at $266.

Will that include utils?