I think you'll cashflow positive, but it may not be as much as you'd expect.

Third, if you get in a position to put significant cash as a downpayment, you should always look at local lenders who know your market, and can move quickly. 

I believe that this would have to be considered in the initial purchase to provide a positive cash flow.

Can anyone shed light on how/if taking the standard deduction impacts rental property deductions? 

I know that we would still have to pay taxes (25%) on the depreciation recapture from the 2 years we held it as rental property.I want to fully understand the tax impact if we keep it as a rental unit.

And if you are qualified as a GC then providing a real repair estimate would be a source of credibility that so many other wholesalers just don't have so I'd definately view that as a positive.

Most of my clients are in position to see an average over 5 years of 9%-12% ROI on cash flow and levered IRR's as high as 30% annually (this is bank financed homes with appreciation figured in with cash flows.)Many of my clients are in other markets including, Cleveland, NW Indiana, Detroit (I know,) Memphis, and Kansas city.

you're in a weak position with the FHA, but it's also a pretty simple one.

@Tony Castronovo is correct about the due on sale clause; that's certainly something to be aware of.From a tax standpoint, though, you will be in the same position. 

What do you see as the most positive option for me?