THAT IS CASH FLOW.I generally tell my students that the fundamental point of reference is your POCKETs.Any money coming into your pockets is a POSITIVE cash flow.Any money going out, is Negative.I then mention that this is EASY to remember.

Hello Tyler, in my experience sec 8 comes everything mentioned above, the positives money is always on time, sec 8 portion. 

@Mitch MesserThanks for the reply.I forgot to mention that the seller said he would bring cash in to the deal.

@Charlie MacPherson: Can you tell me where to find guidelines to help the house pass these appraisals you mentioned?

Great - thanks Chace.Great points - I haven't even considered classes here at uni until you mentioned it ... will let you know.

Like I mentioned, those are just ideas, if you two can creatively come up with a solution that is mutually beneficial, you can do it any way you want.

I should have mentioned that the foundation is part fieldstone and part cement block. 

Expenses on a 2%er cashflow hood house will be much different than a house owner occs will want to buy when time to sell.Of course location isn't mentioned by the OP so who knows.

I would never be opposed to using any of the processes you mentioned above, including the short-term financing, rehab, and then refinance into a conventional loan, but I would want to wait until after my first go around. 

New to the site and new to real estate investing (although I just finished with The Book on Rental Property Investing).My uncle (age 57) and I (age 48) want to start investing in residential single-family real estate.