We bought it for $79,000, with 20% down and were able to qualify for this mortgage because at the time, it was an income producing property.

Or, if you must, perhaps there's ways to be creative about it (such as offering full price with zero down or zero interest, payment terms favorable to you and a healthy balloon that's favorable to the seller). 

Vernon range between 1400-1600.Two bedrooms are 1600 and up.So ideally with no vacancies this house can produce when all conversions are done, at the very least 5,800 a month in rents.

It seems that some of the Midwestern markets aren't real sexy, but they produce.

Experience produces patience, and patience reduces frustration. 

If I found the perfect deal I could make this work, but based on the number of units sold in the area I desire, it may take a year or two for that to happen, and time is not something I want to waste.The properties that I would like to live in AND have healthy cash flows seem to be in the 700,000 to 900,000 range.

Mini Split system might be okay for A/C but I would not rely on it producing enough heat in the middle of a Colorado winter. 

@Stephen BrownMy .02 is a healthy dose of patience and capital will go along way in the next 12-18 months.

Leverage at healthy levels is a beautiful tool.

At your age, and with the properties producing $4k/month, my advice would be to keep the leverage on the houses and let them be paid off over the 30 year term.