However, there are multiple programs that I utilize for my clients that give a savvy investor extra credit if the market rents fall below in-place rents - that extra credit comes in the form of 110% of the market rent being used for underwriting. 

Flipping is extraordinary hard right now, I look everyday at deals in 17 counties these range from the nations capital to rural areas with population’s in the hundreds, I also act as my own gc, am a real estate agent and have a relatively cheap line of credit (8.25% no points) and I’ve bought one deal in the last 2.5 years. a flip really is a quite easy formula 1. your purchase price (you make money when you buy)2.

I have to have separate bank accounts, credit cards, and books.

Even a bank with an 850 borrower credit score will not give a 5% loan with that type of down payment.

What are you scenarios looking like as far as credit and the types of properties ? 

Are local credit unions more flexible on these criteria?

And what is your credit score?

I would ask her to offer you a 2% seller contribution (Seller credit) if you are buying it as an investment.

I am looking into purchasing low income homes and going the Section 8 route. 

I have stellar credit and own my personal residence (valued approx $950k) free and clear, so it would be easy for me to get financing personally to purchase it and then transfer to LLC, but that sounds like that could be messy.