I know that my COC my be lower, etc but my main concern since its my first property is being cash flow positive.  

By this I mean the liability event that has you so concerned. 

Depending on where it is, your biggest concern should be will the new furnace, AC and hot water tank will still be there after you close.

I see the concern though...

Title changes or profit-sharing arrangements could raise concerns if they violate owner-occupancy or primary borrower rules.Financing in Your Name: Since the 203(k) loan will be in your name, you’ll be fully responsible for repayment.

My main concern is whether it's hard to meet their criteria for properties and secure funding.

Though the property and surrounding areas look nice in the pictures, the doors and windows has bars which concern me.I am just starting our my RE investment journey and all help is greatly appreciated.

Why I am leery of these "creative" things for people with little to no money One of the concerns of going to fast is over extending beyond their resources. 

There is almost always a market for a going business concern with a positive cash flow.  

Private money won’t take it because if I can’t refi it out they won’t get their $ back and I can’t ask my investors to do the same for the same concern.