My area inventory is about 1.6 months and not many great deals for flipping.

Amazing, I cash flow about $682/month and it's gone up about 30K since I purchased it.

In small college town with high rental demandAsk price 745kGross rent: 9750/mth 177k/yr     (differed maint properties with potential 200/mth per unit increase once renovated) estimated reno (190k across portfolio)NOI: 91,475/yr   (12.6 CAP)    (includes tax, ins, listed maint for past yr)     After reno NOI 127,475/yr   (14.6 CAP) Deal info:    - Owner finance 745k 20yr at 6% 20k down minus deposits (~13k)Cashflow  = 2100mth     (self-managed) (self maint similar to the previous owner)By this alone, 2100 cash flow added per month, it will put me at my financial freedom number of monthly cashflow is equal or greater than my families spending amount.

My hypothesis is that I should be putting aside around $33K to cover the down payment, closing costs and about 6 months of reserves for PITI.

It is much better to have a reserve fund and add it monthly.

Before you spend any money, you just need to price everything out (i.e. cost of homes, moving costs, installation, hook ups such as electrical, water, etc). 

My wife and I are moving to the isabela area in a couple months. 

Just make sure you get a lease agreement on your old home (to be rented) and the first month's security deposit. 

Just purely looking at numbers property 2 comes out ahead buy a few hundred bucks a month depending on how high it gets bid up.Any advice on this?

They have paid the rent this month, but not the sewer + trash.