I don't want to base everything on a "rule" or a test, but finding most deals so far struggle to meet the 1% rule, let alone come close to the 2% rule. 

Given these are short-term rentals, there will be no rent rolls and they are not pre-leased.

However, we knew we needed to hamper down and get the ball rolling.

I'll update with what it looked like after I fired the contractor and as we get rocking and rolling with a legit contractor.

Does it make sense to buy a turnkey property or 2 to test out that market and really build up a solid team? 

I'm sure I don't need to explain to you the FHA self sustaining test for 3-4 units either.

Take the total rent roll - the unit you are living in and subtract all of the expenses.  

Hey Jaycinta,for me as it stands unless something is missing this deal wouldn't pass my tests. a few reasons. i personally am looking for 10% cash on cash minimum. i'm also looking for some sort of value add, either the purchase price could be great, or some units would need work to increase value or rents would have to be low and you could increase them. from what you've presented it doesn't seem to have any of these abilities. a few other things to point out, very rarely would a new to you place really need zero dollars of work. think paint or carpets, or landscaping or anything like that even if a large rehab doesn't need to take place. additionally i think if you shop around you could do better than 5% for your mortgage. 

All of our pre-licensing education, testing, and continuing education, assumes that the only place you get a mortgage is by calling one of us (biased source, much?)

We do what @Abel Sanchez said in our SOLO401Ks that were rolled over from regular 401Ks and IRAs.