You should manage yourself or ask for a 2% discount.

If you purchase a property in the Midwest for $30k at a "20 cap", and you get lucky that CapEx doesn't kill you, and lets assume that you earn $500/month of true cash flow even after 10 years of holding (this would probably never happen, but I am giving your statement every possible benefit of the doubt).Or, you purchased a $500k property in Northern California at a "3.5 cap", this was bought at a true market cap -- no discount.

The property does need a bit of work, and think I can get it at a discount from the motivated seller.

I have been listening to the podcast and am getting really excited to learn all about the different ways to earn additional income as a real estate investor.

Keep the rest (117k) for savings/additions/whatever else/maybe pay the monthly mortgage??

Failure to do so results in having to refund the entire security deposit, PLUS an additional 100% of the original deposit. 

If you go to a Home Depot they have a Contractor Relations desk - You can ask the manager for a 10% discount on a large purchase - I've done this a couple of times and had success!

There are a few funds that invest in notes, which offers good downside protection due to the discount the fund is able to buy the note at relative to the properties value.

In addition to the local REIA's, check into local real estate Meetup groups (Meetup.com) and there's also area-specific Facebook groups.

I want to add it to our rental portfolio.