This is what many, many people here on BP have done, especially to get started.In your situation, it sounds like you need to find a property where you can force appreciation into it. 

For example, appraisal fee is $650 and when I questioned him, he stated "investment properties usually cost more to appraise" which sounded pretty fake to me but I don't know any better as of current.

Wife finds a 1/2 carat diamond engagement band inbetween the wall and baseboard.

From the sounds of it, you are still looking for the right deal. 

Sounds like the property is large enough for condos so a variance shouldn't be required but if it is you'll need a lawyer.Good Luck,John.

If half of the down payment is your $5,000, sounds like you're putting $10,000 down on a (maybe) $50,000 property.

Hi Billy,Sounds like an ok deal to get your feet wet.As you listed out there are pros and cons to the nicer areas vs lower cost areas to invest...the biggest challenge others face in your shoes is actually pulling the trigger and getting the first deal on the books.

I very much appreciate your comments  and will carefully consider them before engaging in my first RE deal.

@DeAndre Moore wow it sounds like it went fantastically!!

Kind of sounds like an industry created certificate...the best they can do if no lobbyist to push creating a law to require certification to rehab burn outs.