Now, wholesalers will say that they are not selling homes, but are selling contracts and this is kind of a gray area. 

If not I would pass and rent it as is (if in good rentable condition.)I only go into a full rehab when I am ready to sell the home. 

There are some special assessments coming up, and I've heard that some of the neighbors have been dropped by their home insurance providers and are struggling to find affordable home insurance in SD. 

However, I have been on the hunt for local credit unions who complete cash out refinances, and all the ones I have talked with only offer home equity loans.

Since we won't have a mortgage, our hope is the property will appreciate over a few years and when (hopefully soon) mortgage rates come down, we can do a cash-out refinance on the home and invest in additional property(ies).Does this seem sound?

Like the other posters have mentioned the credit score / credit report is likely an issue - with what you describe there certainly seems to be some stuff missing for it to be that low - but on the flip side, it could be a situation where professional credit repair could make a relatively quick big improvement.

Our current income sources are:W2 JobFreelanceSingle Family Home Rental (just one)We have been renting out our single-family home for about 2 years, generating $300 / month in cash flow.

With the potential for a Fed rate cut on the horizon, it's a great time to consider refinancing or purchasing a home.

Hopefully the area keeps getting fixed up and those things will improve!

Just make sure to research thoroughly and consider working with a property management company if you invest far from home.