Out in small town Iowa our Selfstorage development has dried up due to the high cost of building versus low rental rates.  

They said they did loans as low as $75k and the house needed to appraise for a minimum of $100k.

...I wouldn't.To make matters worse, the property isn't appreciating (because it's in a low appreciation market, or even a depreciating market), and the tenant pool is primarily made up of people with bad credit, low/no income, and a history of property damage at the previous places they've rented.

The agent initially shared a strategy to price low and let the demand drive the price alternatively they also suggested that they can market to their select clientele and sell it off market.

A common strategy here would be to move out of the townhome -> rent the townhome out -> house-hack and live in a new property with low down payment.

@Samuel Metcalf- thanks   1) I would recomend getting a HELOC in place on your primary residence duplex  for  as much as  possible...this should be available for  free or a low  cost and the rate will be variable in the  8-11%  range ...prime rate +  margin of  1-3% ) ...the min payment is in interest only payment on outstanding balance   2)  use the heloc for the  remodeling  costs ...pay it down as  agressively as you can   3) on the  purchase of the investmenet  1 unit -  you are  allowed to put as little as 15%  of the price for your down payment ...the pricing you get for the loan will improve  as your down payment  grows so you might look at  75% /  80%  and  85%  ltv  options 

My credit is good. 

Try looking at it a slightly different way with some quick math:$900,000 sales price$22,500 cost of purchase (appraisal, points, lender fees, title fees, etc - 2.5%)$90,000 cost of sale (10% commissions, closing costs, buyer credits)$64,000 carrying costs (6 months at 10%)$25,000 additional carrying costs (6 months taxes, utilities, HOA, misc)$100,000 rehab cost (the number used above)$68,500 profit = $530,000 max allowable offer.Some numbers may be a bit high, others may be a bit low. 

@Jamie Parker  I would start talking to local banks/credit unions that do investment property construction loans once you have identified the project and have some details. 

Setting clear investment criteria, such as the types of properties you're interested in, where you want to invest, your budget, expected returns, and how much risk you're willing to take on, is key.In order to be financially prepared, it's important to save for a down payment, establish an emergency fund, work on boosting your credit score, and look into different financing options.