With interest rates at record lows, they may want to hold on to a higher rate note, but you won't know until you ask.

There are a lot of people jammed into this house and that basically keeps my rent very low.

Comparable properties range between $260K - $280K.Why I want to buy:Save on rent as the mortgage will be cheaperFix the house and flip it while living in, holding it for 1-2 years for appreciationI would like to offer a low price on the property (reduce 25K+ off retail) since I plan to buy it as is, and upgrade everything in it since everything is from original 1990's construction. 

Depending on levels of finish I would throw $125 (min) per sf for new construction not counting demo. 

@Justin Young, There is no specific debt level that works for or against a 1031 exchange.  

It is a risk management game and I choose to operate within those confines because the "risk" meets my personal level of risk.

You can get hard money for the majority of the purchase and rehab (keep the prices low) and use your $11k as the funds you need to add to the deal.You could do a simple rehab and make even just $15k profit, then you have a significant amount of working capital to get going.

Rood and siding is in good condition, and the first major expense I see in the next five years would be replacing all windows. with a 15 year mortgage, at 5% (I'd rather budget high than low) cash flow would be 6056/year.

I also will be trying to get sellers financing so any strategies on zero/to low-down options would be greatly appreciated.

Lowe's delivers.