Speak with the commercial lending department as it's 5 units.If those are the numbers, you may be able to do a deal like 50k down from you, 50k contribution in the form of seller financing (2nd mortgage), and then the bank can provide the rest including purchase + rehab financing. 

yes.is it easy to do so from out of state? 

Also, what are you doing to make sure you are speaking to the actual landlord and not an applicant's friend posing as their landlord?

Doing flips to create capital and investing the profits in rentals can be a very profitable investment strategy.If you’re looking to invest in your backyard, it helps to network with as many local investors as you can.

I've been doing some research on different rental strategies.

Do you have a rep you recommend there?

Welcome to BP - do you have your eye on any specific properties already?

A company came back saying they could do it for $7,850.

When the underwriter has to sift through operating agreements to determine who the members are and struggles to understand who possesses ownership interests that trigger that particular lenders guarantee requirement you are doing yourself more harm than you are good. 

I would get quotes first and then decide what to do.