Those property's NOI would sell for the same cap rate and a cost to cure adjustment would be subtracted below the line.Finally CAP RATE IS OF ABSOLUTELY NO USE AT ALL FOR SFR'S AND SMALL MULTI'S! 

I will research, manage, and work on the properties myself (He is in another state entirely) so I was hoping to find out how some of you have set up this type of arrangement in the past.

Being new to the area, I am not sure which are the wisest areas to pursue, so I welcome thoughts on the best areas to invest, or more broadly frameworks about how to think about a good deal.I am also interested in advice on the basics of setting up an ideal REI business practice.

Also if you have a lease agreement set up you can use 75% of that income immediately towards your income.

@Jeffrey Evilsizor if the policy covering the property is in your personal name, and you set up an LLC where you are 100% owner, I have a hard time believing the insurance company will come after you.  

That takes time and effort and expenses for due diligence that should be set off by the sale price and I doubt he will look at it that way.You'll get a better deal by making an offer on the whole mess, not cherry picking.Are these to flip or hold, determine that on each property. 

Let me know if you need help setting that up.

Take the second step, and set up keyword alerts for your local area of interest, topics you might be interested in learning more about, etc.  

Here are some good places to start: http://www.biggerpockets.com/meet- find and connect with other BP members that are in your area.http://www.biggerpockets.com/alerts - Set up keyword alerts to be notified of the topics that interest you.And, of course thehttp://www.biggerpockets.com/forums - ask any question about real estate!

   There is a property near where i live that I think can get owner to sale to me to be rehabbed and there is someone who wants to buy it after it rehabbed. so how do I go about setting things up?