Overall after $7500-10k in fix-up expenses I expect that I'll be able to cashflow on the property while living there for free (PITI = $1400/mo, projected avg monthly income w/ vacancy = $2,100).The plan is to continue fixing it up for the next 1-2 years then rent it out in full (either still by the room appointing a roommate as a PM or just rent the whole house).

You have to buy right and cannot pay FMV with the expectation of profit.

Most buyers who buy a portfolio of multiple SFR expect a discount on it.

Here are a few reasons:1) We have noticed that we do so much work in our flips that people confuse our work for almost new construction and expect everything to be new.

Learn your market and set realistic expectations. 90% of people on here do not have realistic expectations for the market.

This forum is more for like general questions like "how much down payment should I expect" or "what types of loans are available"....things like that. 

I'm having lunch with him again soon at his diner and can ask more questions, but would like to narrow it all down abit more and make the most of our time, mentioning the lease option.Answers to your questions:Q1: The 7 units are broken up into  four 1-bedrooms and three 2-bedrooms.Q2: Effective Gross Income was 34,374, less expenses at 15,933 add Expense reimbursements at 3094, results in NOI of 21,535. 

But, if you put little down and have unrealistic expectation about rent price and unable to receive rental income in a C or D neighborhood, expect trouble ahead. 

Those same buildings will sit on the market for a long time, then after being broken into, gutted, and defaulted on their hard money loan go REO for 40k-60k.

Expect it wasn’t 800, more like 500.