Im goinging to cash out refi with a traditional loan in 6-8months to pay the note off with the owner but also use the cash glow to improve the property leading up to application for loan with community bank.

I don't know what your friends mean by "price proper real estate," but I can attest that auctions often go fast and go high, they are very competitive these days.150k is a very healthy egg to be working with.

I would say go for it, that seems like a healthy reserve (without knowing what its for!)

If I received a cash offer, I'd check to see if he has proof of funds attached, a healthy earnest money deposit, a quick close, and that there's not a lot of built-in escape clauses or terms that could cost me money.   

I see you are healthy in mind, body, and spirit - that's awesome.

You have the supply but making sure demand is healthy is always the other half of a business proposition.Sounds like your head is in the right place.

Nobody gets in good shape by lifting a dumbbell or eating a healthy meal one time, ten times, or a hundred times.

My basic strategy is to buy properties in a good market, when I have cash and very healthy reserves. 

I want to take that profit to use it to diversify assets and build a healthy rental foundation.I have some short, mid, and long-term goals (as naive as they may be for just starting) as follows:Short-term: Buy 1 property per yearMid-term: $2,500/mo in residual incomeLong-term: Own 1+ multi-tenant propertiesI'm very new to real-estate as an investment outside of the two years I rented my home.  

The returns can be healthy but with that comes higher volatility.