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. 

Am I correct in assuming that the difference in the estimated payoff and UPB are any accumulated arrears, fees etc?  

Assuming your market is similar to mine, you will have to discount your price because the master suite being in the basement.

I assume around $210,000?

Based on my calculation on a two year term I could make around 40-50k assuming a 5% annual appreciation with the current market value at 215k.