Your friend could then work on improving his credit profile so he would qualify for traditional financing.2.

Once i have proven to myself I'm made for this world and feel i have the confidence I can try out something else.

However, it is important to recognize the risks and making a good decision, so you can move forward with confidence in your future investing.Hope this helps - this is not legal advice, simply just my personal opinion and approach to the topic.

Over-improved yard; Too low on rent amount (initially concerned with getting renters in, neglected cash-on-cash return) Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Assuming you could qualify for an investment mortgage now (maybe a big asdumption) or that you could find a seller finance deal, buying cash flowing rental real estate will actually improve your debt to income ratio and net worth.

Holding costs get deducted....improvements get added to basis.

You have to find another source-either a distressed property, something you can improve and up the value to another level, or perhaps develop relationships with brokers and wholesalers who will bring a deal to you because they know you as someone who has the ability to close.

Hoping to find out from the community if my numbers are off, how can I improve where I get the numbers to refine my number crunching process in the future. 

If the converted property is later sold at a gain, the basis in the converted property is the original cost plus amounts paid for capital improvements, less any depreciation taken.

I assume that by next week at the latest they will have begun working on improving her personal credit.