Based on my numbers, it should cash flow pretty well (a few hundred)My real estate agent has some hesitations as he thinks rents will pretty much be capped at 700, it's not in the most desirable area (more of a rental area), and my tenants won't be A+ tenants for that price point.

I'm sure others will have other input, there is no right way.Keep in mind that a tenant who has been there for a decade is worth a lot, so you may not want to go all the way up to market rent.  

What would be the best way to go about this?

We are in the process of doing our due diligence to ensure the land is in a desirable location.

What is the best route to go when trying to acquire rental property?  

I've been meaning to go dig that up again and ask if there will be another one anytime soon.

Probably not worth your time, in my opinion, to try and do the deal yourself without being able to go there and check out the property and do your due diligence.

As an example if you are doing a 5% down loan on a 100K house, it wouldn't make sense to go to the extra effort to have it in an LLC, I mean what would a judgement against you cost? 

Once I'm able to quickly generate a list it should be relatively easy for me to go to my preferred vendor and figure out exactly how much I'm spending in material but also how much I'm spending in each room of the house.

This will help me understand my budget, what markets to be targeting, and how to go about analyzing potential deals accurately