This is what I had in mind I always like to get a sense of what may work from others before going to see my accountant.

I can refer you to a few options to get your entity created with competence but it would probably make sense for us to connect over the phone to discuss further...and not over a forum (time and privacy considerations). 

So here we missed one payment in this example, but our credit report actually shows 3x30 day lates.Like @Harjeet Bhatti said, you're probably cut off from the gov't subsidized Fannie/Freddie stuff for an investment property for a year or so.However if you come across something, and it's such a screaming deal at that price that it still makes sense even with non-ideal financing (remember that if you have to choose between the two, killer price is better than killer rate -- as any successful flipper will attest to), there's a lot of "Alt-A" (once upon a time called "sub prime") that's come out just in the last year that's better than HML.

Ok that makes sense. thank you!

If you put in an offer that made sense based on your numbers than stick with it.

Do not fudge them just to make a deal look good.Offer at a price that makes sense for you to cash flow without fudging.  

If you have a lot of liquidity, it might be not be a problem to tie up that much cash.Hope this makes sense.

@Jonathan Cope Your idea of renting sooner may make sense for multiple reasons!

With that being said would you think it makes more sense to fix and flip? 

We also looked into targeting only people who were on 3 or more lists, as those should have a greater sense of urgency, but that number of people was so small we just would not have been putting out enough mailers.