If so,  will the $2200 cover the debt service and still give you cash flow, even without the rehab?

I ultimately would like to have large buy and hold commercial portfolio, but I would like to generate cash to be able to pay down some debt and to be able to fund such deals in the near future.

What a huge accomplishment to you have no student debt.

Once I finish paying off some debt I am planning on purchasing a second house and renting out the first.

If you can tell that it is all consumer debt, that is a good sign.  

There are many that will invest in different types of REITS and Debt instruments.

With a portfolio lender, they will be looking at the DSCR, and any payments in a second position mortgage will be included in the DSCR calculation; plus, the debt obligation to the second will be used in computing any DTI.

One angle I sometimes take is to explain to them all the additional expenses we, as new owners, will have as opposed to them who do much of the work themselves as well as debt service.Try to build a good rapport with your Sellers and find out if they won't come down on price if they will do owner financing and offer terms.  

If what you are paying in debt service is lower than your NOI, then you are in the black and not paying too much for the property.

The owner occupant was moving out so the rent each month was just $650- barely covering debt and expenses.