It's likely that they will help you navigate the lending process and likely work with lenders that are already versed in this.

I’d like to connect and maybe trade notes since we are in the same town and both navigating the 203k process for the first time.

This triggers a conversation where I explain my intentions are not to cause harm to anyone or take advantage of anyone in this business and that I am making this my career (then they calm down and relax). 2) As an agent working on creative deals, how do you navigate your relationship with your Employing Broker?

Your time here will be well spent.I added the below links on turnkey properties for your review.https://www.biggerpockets.com/renewsblog/2015/08/20/askbp-089-how-do-you-evaluate-a-turnkey-company/ (Turnkey Evaluaton)https://www.biggerpockets.com/renewsblog/2014/03/23/what-does-turn-key-real-estate-business-entail/ (Turnkey REI)Now that you have made the move, below are some links that will help with the navigation of the site. http://www.biggerpockets.com/startherehttp://www.biggerpockets.com/meethttps://www.biggerpockets.com/alertsHow to Use @Mentions on BiggerPocketshttps://www.biggerpockets.com/ruleshttps://www.biggerpockets.com/termshttps://www.biggerpockets.com/inviteshttps://www.biggerpockets.com/perkshttps://www.biggerpockets.com/forums/categorieshttps://www.biggerpockets.com/rei/glossary/https://www.biggerpockets.com/courses/a-beginners-introduction-to-real-estate-investing (video courses)https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)Before your 1st purchase, please ensure you visit the below link for some tips.https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/REI books suggested by BPershttps://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REIs)http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?

None of these ratios or rules of thumb are rigorous enough that one should base investment decisions upon them.For those investing for a long term hold, a thorough discounted cash flow analysis over at least the first five years of the hold period should be the minimum.  

This is a basic "must do" task for a property manager.What I would suggest in your situation is to find another property manager who can help you navigate through this issue.

If I can't do this in a way that 61.34 defines as the relatively safe and navigable "distressed home transaction", then I'm not going there. 

The most important thing is to have systems in place to help circumvent or navigate those difficulties before they become serious problems.

It's possible that it may not even be a cash out in that circumstance if you as a human do not get any money at closing.A good lender will be able to help you navigate it.Good luck!

You simply have to know how to navigate them .then you’ll get your desired cashflow