I would never assume that you would leave a property that needs work as is even if the tenant is okay with it. 

Assuming you are correct about the rent - it is a cash flow animal.

In addition, let's assume that all other expenses were correctly estimated including property management fees (10%). 

I'm assuming you're going to have some costs there. 

I assume that your city is going to be priced similarly to mine.

I find that a very common hurdle that beginners have is assuming what a lender will or wont do. you said "I don't even think I would qualify for a loan of 100K" which may or may not be true, but you don't KNOW. what you really want to do is ask a lender what it takes to get that loan, rather than assume you can't get it and then blindly try to improve what you think they need. does this make sense?

Find  a partner who has a wheelbarrow full of capital that you can plow into a deal  and show their funds as your ability to close ( assuming they are good with it.... ) Good luck .

Oooook so when I'm projecting our expenses, I've been doing it wrong assuming that I will need homeowners AND renter's.

So assume $5,000 for a new roof.

That essentially means that you cannot use an SBA loan to purchase income property assuming all else is above board.