I am originally from Grand Rapids, MI and have been starting to evaluate rental properties in the area again.

Kalamazoo and Grand Rapids are safe bets too. 

I'd have to disagree though on allocating a grand total of 15% for vacancies, maintenance, and capex. 

In a short sale, EMC might allow the second a few grand.

[b] I am looking to invest in a property for my two grad school kids to live in location Grand Rapids, MI.

I'm from Grand Blanc, which is about 15 miles south of Flint, or 45 miles north of Detroit.

so its just a balance of time is money and its not worth wasting time to save a few pennies but looking and keeping up with regular sales and coupons can easily save me a grand or so.

I would just put an add on marketplace and get a wholesaler to give you a few grand for it and walk away.. my gut tells me that trying to rehab it your just going to throw good money after bad.. if it truly has value you will have offers on it.. 

I've already done plenty of research on the conventional, Fannie/Freddie side of things (couple grand in closing costs and rate between 4.5 - 5 with no points) but noticed quite a bit more variance with the portfolio lending side of things.  

But it's going to cost you a few grand to do your first few drops before you get a deal.