I think I have minimized my risk by purchasing it out right and then testing the market for what the property will rent for to further prove my numbers for purchasing additional houses in the area.Once it is rented I am going to work on either refinancing or getting a line of credit for the purchase of the next house.Hope this helps any new investors who commented on my thread. 

Also need to remember, most buyers have a home inspection done and then can come back asking for additional money towards repairs etc.  

Risky, but to land a property make take additional risks.

That before you form the LLC in the area you plan to invest in, you need to ensure that LLC for the specific stare has external asset coverage.

You could offer to pay agency, pay an additional 2500 cash, and then ask the Seller to be your bank for 18 months at four percent interest only.

@Kevin McAnally In addition to the meetup that Michael mentioned (we have a meeting coming up on the 19th, check out events section) feel free to check out the following event on meetup.com scheduled for September 25th “Quad Cities REIMG - Welcomes Kevin Schoonmaker with Bank Orion!”.

Or is it in addition to QB?

I am managing it myself and have a handyman in town.The lease terms do not include lawn maintenance or snow removal, however my tenant does not want to do it herself.My handyman is willing to do it for an additional fee if I provide the snowblower and lawn mower. 

@Russell Brazil I didn't think about the additional demand for rentals when people can't afford to own. 

Even if the new appraisal came in at the $94sqft number that would give me roughly an additional 30k of equity to potentially use for the next deal.