Cash flow is the objective here.

Any suggestions from a more seasoned investor as to how to find the right property when investing for cash flow is my main objective.

Having said that the area appears to be one of object poverty, the homes are dilapidated with unkept lawns and trash strewn on the streets and it's an area of high crimes.  

and yes Iv'e done a fair amount of research into the FHA loan. my first objective is to get my credit score up so i will be able to qualify for the 3.5% down rather than the 10%

The "it was grandpa's house" objection is just a ploy to cover up the "I'm trying to eat an elephant in one bite" reality.

One thing to consider is, if the neighborhood is all SFR, then the neighbors may strongly object to a duplex going up.  

A 10 year mortgage isnt an excuse to raise rent.Using an SFR for instance, if you are to cash flow, rent at a minimum should equal: Rent=Mortgage payment + Operating Expenses + Required Monthly CF orRent=Total Expenses + Required Monthly CFIf you are told any different, the objective isnt CF.What you will also find is that in many markets, the market rate (what people can pay) for rent may be lower than just the mortgage payment alone or lower than total expenses (mortgage payment + operating expenses), in which case you will have a negative CF -- translation, find a property that actually does CF.

@Dan Heuschele I'll ask about it next week and post what they say.The objections are coming from people whose neighborhoods were SFR and are now vacation rentals.  

Different objectives might steer you towards perhaps higher end neighborhoods with greater property appreciation value, or it might encourage you to make different financing decisions. 

Because the proposed amendment changes the use by prohibiting certain rentals, I think this provision should apply.I also have a problem with the Written Consent as it does not allow you to vote no.Written Consent says deadline is Jan. 31, 2018.We could put together a letter objecting to the proposed amendment if you’d like."