Purchase price: $275,000 Cash invested: $294,000 Sale price: $355,000 Seller was behind on pay HOA payments and in risk for losing the property.

Many groups buy cash flow negative deals and overraise to pay distributions right away. 

When you draw from the equity, you are "borrowing" it from the bank and have to pay interest.If you borrow against the equity at 7% interest and then loan it out at 15% interest, you are earning a positive 8%. 

More than happy to partner up or pay for the deal itself.

I have excellent credit and good paying job approval will not be a problem. 

I did with with mine and pay myself back interest included but I don't if that's an option your plans offers.

I would buy something closer to turn key if you can, even if you pay up, because it will reduce the work you have to do and figure out as a new large-scale investor.

With regards to your example about plaster vs. drywall most insurance policies no longer will pay for the plaster whether you have a public adjuster or not. 

For example I would rather buy a property for a $100k discount that may have negative cash flow of $500/mo month for 3 years than pay market value for a property that cash flows $200/mo.

You will be paying 6-10% for just having them collect rent.