.- Do we rent my house and live on the cheap at my BFs?

It's a decent neighborhood close to main roads and shops that's been improving year over year, which is nice, however I feel kinda dumb buying such a (previously cheap) house for $55k.

There are a couple cheap ways to automate marketing to motivated sellers and plenty of free ways if you have the time to put towards it. 

They are out to maximize their profits, so they buy cheap properties, do as little rehab possible and then try to sell for overmarket value if they can.Unless you plan on taking advantage of your relative, you probably want to have a chat with them to figure out what would be a good investment for them - Cash-on-Cash, ROI, etc.This will help you narrow your search, acquisition cost, rehab budget, etc., so you deliver what they want.Now, if you work extra hard and find a way to squeeze more money out of the deal, you should benefit from your hard work. 

Do not cheap on on your paint.

Good ones get to stay cheap.

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

***Only exception is if an owner has plan & funds to reposition Class D to Class C or higher.https://www.biggerpockets.com/forums/776/topics/960183-what-they-dont-tell-you-about-cheap-rental-properties?

Biggest mistake I see out of state investors make here in Cleveland is overpaying for a property because they compared it to where they lived and thought there was no way they could lose since it was so cheap....You can still lose on a cheap deal folks.

If so that is DAMN cheap and I would be all over that to get it done.