I plan on using an FHA loan to take advantage of the 3.5% down payment and possibly a 203k loan depending on the repairs needed.

Lindsey, I have been looking into the house hack technique with the idea of using my VA loan.

The ARV is 220 - 230K and repair costs are 20 - 30K.

We ran rent on the lower end for $3,600 income (current tenant paying $1,200, average is $1,800) with expenses being about $2,400 (pulling out 8% each for vac/repair/capex/management as it's a large old building). 11.58% ROI, 12.67% cap rate, cash flowing $1,200/month if we rented all at the lower rents.

dont forget that if the plumbing and/or electrical need to be replaced there will also probably be extensive drywall repair...

The Refinance loan is not the After Repair Value (ARV).  

Then, I make the repairs and rent the property.

I see a lot of Single family advertise as 10% cap rate but once you take into account insurance/ Capex for future repair etc i think it is closer to 6%/7%.Whereas for a condo I don't see the  expenses to add up and deteriorate the cap rate to 7%.

I can hit my numbers with a 47k purchase price assuming around 8-10k in repairs if any of the above mentioned are issues.

And because we got in early, we had done extensive evaluation of repair costs and were able to make a strong offer with no contingencies.