Initial investments will be flips, but the group is also interested in getting into rentals in the future.

Look at how long units stay vacant in the market and build that into your calculations.You may also have an initial period after you close where you're removing non paying tenants, so consider that as well.

He has signed the lease and has initiated ACH payment for first month rent and security deposit.

@Jay Hinrichs brought up a great point about partnerships if you are low on initial investment capital.

Since I'm planning to owner-occupy, I initially thought a FHA or other small down payment mortgage would generate the best returns, and after reading a few forum threads it seems like that's what people usually recommend.

These are the remaining steps I have in order1.Initiate the quit claim paperwork and submit to county2.Set up a bank account (should it be done before the quit claim or it does not matter?)

Initial investments will be flips, but the group is also interested in getting into rentals in the future. 

You could also do a cash out refinance for the initial cash do the renovations and then do another cash out refinance after the renovations for the new ARV.In some cases investors do (2) cash out refinances - one to take enough for the renovations and then next for the new ARV and to pull out more cash for the next project at the higher ARV/LTV. 

The Discount: After the initial no call no show I wrote a pretty terrible review about them on google.

The thought initially was so we could get an FHA loan on one, as my wife and I do not want to move into a multifamily.