Financing: VA Loan $0 down, 4.5% interest rate- 30 year fixed (will be owner occupant)My question is: what would you guys offer for a house with previous damage?

@David Ribardo and @Joe C jump in with any edits/comments you might have Purchase Price $149,900 (50K a door rule looks good) Three units total gross/month 2239 (1% rule looks good) Fixed expenses: Taxes 2517, Trash 1125 (375/unit in Allentown unless private collection deal previously arranged) Insurance: 703 Common Electric: 519Water/Sewer: 802Allentown Fee: 225 (75/unit/year) Variable Expenses:  Vacancy: 2239 (One months rent of each place, or 8.3%) Management: 1800 (50/door/month) CapEx/Maintenance: 3000 (1000/door) Total Operating Expenses: $12,930 Total Gross Income: $26,868Net Operating Income: Op Ex - Gross = $13,938 Divide your NOI by the cap rate your looking for and you have your offer price.

If so then I would look into 2-4 unit multifamily and get a 203k loan, this allows for minimum down payment and you can buy really messed up homes and use the banks money to fix it. 

It has been very well taken care with the major nuts and bolts like the windows, roof etc being in good condition currently but it was basically treated as "if it's renting and not broke don't fix it". 

Was really looking forward to fix and flip but I think I need more cash to make that happen but who knows I'm a newbie.

So you fix a place up to a reasonable level (say $2500 reno), but you don't attract the best tenant at the highest rate.

@Nathan Murray the answer to this question may depend highly on exactly what type of loan you are looking for as I use two different banks, 1 for commercial lending (5 year balloon, 20-25 year amortization) and more products for rehab versus another for conventional lending (30 year fixed).

If you didn't get your own inspection and make the inspection repairs during the rehab, the buyer's inspector could find a hefty list of inspection repairs that need to be fixed and repaired.  

My second option is fix and flip out current home we bought last year.

That will not be a cheap fix.