Average rent collection $4,400 given vacancies Utilities we pay: $700 a monthRepairs: $200 a month (some improvements built in there)Insurance: $80Property Taxes: $125 per month@ 12 years= $1,471 payment.Net cash flow: $1,824.Appraisal come in at $150,000 today.Combined the properties should cash flow over $2300 a month.

More than likely it’s an average deal or a bad deal..

The way I see it, as it is now below 50% business use we should commence depreciation recapture for 2019 (and onwards until we convert it into the primary residence or we’ve recaptured all the depreciation), and as such should recapture the average annual depreciation each year.... or am I missing something..?  

No particular area as long as 40 miles from large MSA and relatively stable job market and sub 8% vacancy average

This specific area saw 5% increase in average home prices value in 2019 and is projected to continue to see positive growth in home value to the tune of 3% in 2020. 

Rents average $750/unit on 3bd/1ba units.

Going out of state has more risk as presumably you've got the following working against you.Lower than average market knowledge.Lower than average number of contacts.Lower than average ability to do things yourself if need be.As for rentals that's a bit more passive as your Property Management team can handle a lot of the workload. 

I have above average credit so most conventional institutions are only supplying for primary at 80% which does not help.

Now i get that when you go on zillow and similar sites that you get the comps through there but i cant see the houses sold in that same block and also i dont have money for contractor just to give an  estimate so how can i determine an average cost for repairs without a contractor and get a close arv so i can make a good offer?

One of the applicants credit score is good around 750, and the other is above average at about 650.