I realize you can make money at any level but we're looking to stay where we're comfortable for right now.-- Good condition. 

Have a seat, let's run the numbers together:Original Purchase Price:  $82,100Loan Amount:  $73,890 (that's 10% down)Rehab Cost:  $35,000ARV:   $150,000If we were to stay with our Lender for the cash-out refi and do this within 12 months of closing, we can cash-out 75% of the acquisition price plus the reno cost:  $82,100+$35,000=$117,100 x .75 = $87,825 (max amount we could take out)However, we would just want to recoup our initial investment so we can do this again and leave some equity in the home.  

I would offer what you are comfortable.

Either stay with the first and rent the 2nd or move into the 2nd and rent the first.Do this about 6-9 months apart so you can buy them as "owner occupied" and get a great 30 year loan.If you're married, have her do this every year or two as well.Of course this is a slow way to build but will work for the year or so while you're learning.Once you're more comfortable, start buying the props with cash (from a LOC or HELOC or private money) then rehab and refi with a higher appraisal than the purchase price.

@Martin Scherer Getting the 2% rule properties are definitely not possible on either coast, but in a number of Midwest states, you can still buy decent properties in decent areas that will meet the 2% rule.In the area where I invest, if you feel comfortable investing in some not so good areas like Gary, you can get properties that make as high as 10% gross rental returns.

Would like someone to assist, until I get comfortable with the estimation part, with rehab estimates.

On the screening, at a minimum, you will need to make sure they have down payment, pull their credit (get their authorization first) and verify income to ensure they can comfortably afford the monthly payments.

Just ask if they are comfortable.

I need a title company that's comfortable doing assignments and double closings.

My gut is not very comfortable with the area, especially having college students as most likely tenants.