I know that my first property isn't likely to be a home run deal, but as long as I can make it a decent one that doesn't end with me loosing the property or being stuck, I'll count that as a win. 

Its ok to wait wait rather than jump in and loose money

Is it good idea to do cash out refinance and loose 2.85% mortgage interest rate and pay bunch of fees like closing costs, points (but I can clear of high interest credit card debt with cash out money ?) 

But still be bound to sell the property to you. 

Honestly, it never occurred to me that I would receive such an itemized bill or I wouldn't have been so loose and free in my emails to him. 

So, don't be bound to the rate of the first mortgage!

Hey mate,Welcome to the wonderful world of real estate investing.For what it is, here is my opinion without too much depth:1) Have $100,000 in cash2) Look at the Midwest3) Spend time networking and finding the right people (Realtors, contractors, title company, etc...)4) Buy a distressed property for dirt cheap (Cosmetic rehab only)5) Renovate it6) Sell it7) Loose money (You most likely will on your first few deals)8) Learn and don't repeat the same mistakes 9) Do it againGod knows what doors will open and what the future will bring.I started in a similar way and it lead me to owning a turnkey company, property management company, brokerage, other businesses, investments and monsters with 17 heads heheJust my opinion off course but since I offer turnkey properties, maybe you should just buy turnkey heheJokes...

I often point out to the seller 2 facts. 1st, if they hold a note instead of a lease, they have zero liability vs the lease where they are still bound by tenant/landlord laws. 2nd, they can always sell the note to a note buyer if they ever want a chunk of cash in the future. 

Thats's the goal is to make as little mistakes as I can before buying anything but like anything you are always bound to make a mistake here and there.

Do the math and see whether it is better to loose $50K now or more in the long run.