But anyways over this past summer I got in touch with my real estate agent and she told me that in perfect condition my house will be worth 200-210k and I owe 120k, well in my own opinion I believe that's a high estimate.

At a minimum, an agent can set up multiple "hot sheet" searches to find rentals that meet "The 1% Rule" (monthly rent must equal 1% of the purchase price).The second step after determining potentially good rental spreads is to get a close estimate on rehab costs.  

The hard money companies I looked at so far ask for an estimate of repairs so that didn't seem right.

You will need to get several bids from plumbers to give you an estimate of the cost to install new meters and run any needed line to their appropriate locations / retrofitting, etc.  

Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbookYou might consider Niche or Specialized Housing like student housing.

Also a good equation for maximum allowable offer (MAO) isMAO=NOI/MARKET cap rateDont use the cap for the property, use the cap for the market it is a much better estimate of the future of the rental market in that area.  

What would you estimate is the market value of the property?

You are then allowed to use 75% of that for qualifying income.For example: If the appraiser estimates $1,600 in market rent, then per Fannie guides, you can use $1,200 towards your qualifying ratios.

Most everyone can gut a home, but knowing how to estimate costs,  see what needs fixed and be able to accurately estimate  a job, project is critical to you even having a chance at succeeding.

(This one is rolling around in NJ, only cost about $3,000 for the full wrap, and he estimates it has paid for itself 20x over...).