Long Story short, we found a "ugly" house on mls that not in foreclosure yet that some company bought it directly from owner, but everything still in working condition, just need cosmetic rehab. 

New flooring, new paint, and other minor cosmetic updates.

New flooring, new paint, and other minor cosmetic updates.

Get portfolio loan on a 40-50k house that needs cosmetic work.

If I were to use a FHA whether it be a 203k streamline (I may be mistaking it for the other 203k loan: which ever is for basic cosmetic issues would be the one I'd pursue) or just a normal FHA loan, could they qualify the income already being produced from the property from tenants who are wanting to stay when owners switch even though the income isn't in my hands yet since I haven't purchased the property quiet yet?

It’s cosmetic, but it’ll only get uglier. 

Feet: 1,502Average rent for this zip code: $850Nearby comps are listed at roughly $85/sq foot.The factor I'm unsure about when trying to analyze is cost of repairs - this particular house doesn't look to be in very bad shape, it looks like just cosmetic work all throughout is needed. 

Also I don’t have much experience with rehabbing in general so it’s very hard for me to see a property that’s solid and estimate how much I could make with small cosmetics improvements in the house or placing interesting stuff in bathrooms/kitchen or flooring/ceiling.

If you dont run new plumbing and do cosmetic upgrades to a good sized 5/3 with a full bath in the basement and you don't go crazy and over spend which you can aid with some sweat equity you can come close to living for free or maybe make money if you rent the other rooms.You can probably get a good 4/2 in Baltimore for 150k. 

The house needs foundation repairs, a new roof, new fence, and cosmetic repairs such as paint and new floors for the 2nd floor and stairs.