So now is a good time to buy if you leverage your ability to put a good amount down and close...that is attractive to sellers that are eager to get out of their property. 

Any advice on knowing when to purchase, what to purchase, etc. for your first property, would be great!

There is way too much liability in placing this type of tenant.

This will help you learn about property management and also you'll know what to look for in a PM.  

I think paying off a loan with a high interest rate debt and adding to the principal is one way to stay liquid within the property. 

Another concern is the shower in the basement is also very small so I don't know if that would deter potential guests.

@Kristin Boekhoff to add to the great input from @Jason Taken:1) To save money, you really want to clean as little as possible.

I have gone round in circles trying to figure this out.

First I got preapproved (I know... another lender saying to get preapproved) of course it was important to my realtor and offer, but more important it gave me insight into what I could expect for cash needed, payments, etc. 

Can anyone recommend a company that offers a builders risk policy to cover the construction period but then will also allow a cancellation and refund after work is finished to convert into a standard landlord policy.