Is there anything else I should do to lower my initial risk?

As people with higher income move out of an area, those left behind will, on average, have lower incomes.

I watch a lot of flip shows and it seems that they are quoted a lot lower. 

So you could only receive $50k in your first 6 months ofownership since the LOWER amount is your purchase price.

There are definitely some decent spots and good people there, but the quality of tenants is lower and you should not bank on appreciation.

Thanks Jerryll Noorden So essentially you’re getting money back from the contractor for work he didn’t perform, so your rehab costs will be lower than the $120k and actually closer to $95k once you get that money back?

What is higher or lower on yours? 

Typically the higher the % the lower chance property has for appreciation.

However, if it is lower than 5% you should pay the minimum and use the money to invest.

So here it goes:1) Single with no wife or children: House hack with an FHA loan, lower down payment which lets you be able to use the other cash left to leverage for another property. 2) Single but engaged or Married with no children: House hack again with an FHA loan, but move out once the 1 year stay requirement is over, and rent the other unit out.