I've looked at properties in Gastonia and for the most part it doesn't yet seem as saturated, I think the one thing keeping REITs from saturating the market there is older homes and lower rental prices (except for a small pocket of REIT rentals in Willow Park, where property is newer and values are higher). 

We were raising rents then while MF lowered or went vacant.

Home possible has lower MI  compare to regular conventional loan and lower interest rate. 

If anyone is in the same market area as myself and would like to teach me would be awesome but most people ask for an arm and a leg (not affordable).

I don't know much about that market but I have worst situation here in my neck of the woods, so I would say 8% cap with 11% COC is much better, but then you have to weigh in other factors and see if you can either increase the COC by lowering cost or increasing NOI thru some value add.

In addition, if you get a home inspection, typically that is another point in the transaction where you can use the results to negotiate for repairs or a lower price.

Currently the title company is doing the tax certificate process and he owes $5300 to be exact, Is it possible or likely to instead lower my offer to $2000 and settle the taxes with the city?

Can I just lower the ceiling (hang drywall 2" lower than current ceiling)?

This is not as intriguing to me because the ROI is much lower.

Hard money lenders charge higher interest, but it is usually anywhere from 9-13%, so it would STILL be lower than the option you chose this time.