I have been offered an exclusive Deal by a local "friend"/ semi-mentor in my small town.  8 standard 2/1 apartments -  Quad, duplex, duplex, 1970 Dated buildings, little neglected but liveableOwner finance: 20yr 6%rate with 20k down------------------------------------------------Total purchase 400KCurrent NOI: 41k     Cap: 10         (Tax,Ins,Maint, Util)Gross rent 4500/mth-----------------------------------------------Upgrade, Est repairs: 60k After reno: NOI: 59K   Gross rent: 6100------------------------------------------------Loan pmt: 2865/mth,    34k/yrCurrent Cash flow: 531/mth,  6,378/yrAfter reno Cash Flow: 2131/mth,  25,578/Yr-------------------------------------------------Added info- -Property line Joins with (growing) Community college-Tiny town-The Buildings are Currently "uglyish".- Current Rent is 150$- $200 behind market avg.I am very comfortable in single family homes in this town (own 18 SFH rented and performing well).

My conclusion is that Oregon offers some of the most investor friendly coastal property operating expenses and value in the country. 

This is what I was looking for, thank you so much for taking time to offer up this advice.

Yes, you can use FHA and Conventional program for a primary home if you are buying a "Distressed" property - (Will not pass an inspection) "Subject to">  FHA offers a 203K loan and Fanie Mae offers a Home Style program which has the sole purpose of working with distressed properties. 

We waited 7 months for the bank to make a decision on the short sale, and once the bank came back with an acceptance counter-offer, our buyer bailed, even after multiple times of telling him this was a really good deal!

The idea is to understand how to make the financing work on my end and come up with some budget then start approaching land owners with a set plan/offer to see if any of them are willing to sell.Need some creative ideas from some experts to help me understand how I could make something like this happen.

The cost of living is extremely low compared to other cities and you can still many many positive cash flowing and 1% deals here.

Frankly - this space has become extremely saturated over the last 10 years - so the odds that you find this one "diamond in the rough" deal is relatively low all things considered. 

This type of foundation is extremely porous and lets in a lot of water.

Did you get robbed or offered drugs while walking around?