NW part of USA is ideal.

Ideally I would also find undervalued businesses as well.

This scenerio is only ideal if you are already friends with the renter though.I was surpised at how much we actually enjoy having a friend living in our garden apartment.

While attending school I've discovered that its not the route for me.I'm brand new to RE investing but have been watching youtube videos on leveraging, profitable cash flows, etc etc.I have bad credit due to past family altercations (sub 670) so financing is out of the question, but am debt free.So here is my situation, I have a business partner who owns a construction company and is willing to front all the labor costs of rehabing properties as long as we split costs of materials 50/50.

If you're a newbie, I believe it is an absolute basic requirement.Not only will it help clear up some outstanding issues and provide a detailed step-by-step procedure, but also the speakers, Shirley Henderson in particular, offer some valuable tips I have yet to see in any book, YouTube video, etc., or anyone here on bigger pockets.For instance, they will go over the process of double closing, how is totally unnecessary and why only newbie wholesalers would consider it.

Also, I personally find it very beneficial to watch videos on YouTube.  

For example, you may pay close to market for a home (ideally you would not) but if the subsequent housing expense (P&I, PMI, maintenance, insurance, taxes, etc) are below your current housing expenses then you can bank the difference and put it towards your next property.  

Ideally they like to work with one General Contractor, so keep that in mind. 

A sample deal that would be ideal for me would be to buy a distressed multifamily 2-4 units for 15,000.

Ironically that'd be an ideal property for me.