Want to avoid potential pitfalls in the overall journey before you even get started.2 - love the idea of water falling all your profits and cash flow into future purchases and down payments.  

My opinion/viewpoint only, but a lot of TK are properties that have minimal/no/negative cash flow and are marketed to newbies.

I would like to get into rentals because of the cash flow.

The numbers look good and based on them we are looking at positive after-debt cash flow of $289/month.Simultaneously we are looking at another property where we would be spending $7000 less in rehab costs but will cash flow for $230/month.  

Are you looking for a lump sum of cash or do you want cash flow?

You'll learn everything you need to know about cash flow there.  

I am still considering the deal, because the cash-flow on the back end would be nice and I can refi and pull much of the money for the rehab overall back out of it. 

Your 40k can mean a completely paid off house in one neighborhood that might potentially cash flow 2% per month.

Would you mind expanding on how you calculate your cash flow number?

However, it's still better to get into the market with extra cash-flow coming in than to wait.