So we negotiated an even lower purchase price.

I'm interested in turnkey properties in the future as well to build my portfolio as the cost of some of those cities you mention is significantly lower than our coastal areas.To get to your point it sounds like you need to decide how involved you want to be. 

Im looking to tap into equity to start flipping houses and eventually get more rental properties after I pay off my credit card debt to lower my debt to income ratio, any advice would be appreciated!

Some do but they typically offer lower LTV's when compared with HELOC's on primary residences. 

Smaller bedrooms and kitchen, bathrooms need to be remodeled.Long and the short of it, 1 is in better condition but not as nice of a street and 2 is outdated and needs to be remodeled and we feel like we could get in at lower price given comps and time on the market Any help or recommendations would be greatly appreciated!

HELP: not sure if it’s a waste of time, or should I focus on condos, what other numbers should I consider when looking at potential deals (I check PITI to be lower or equal the rent), what I need to know about the market I’m in?

I was under the impression that rates were around 5% (or lower) for 80% LTV loans, however im getting quotes for as high 5.75%, and some big bank lenders aren't even doing 75% LTV loans.

The benefit is having lower living expenses and having someone else help pay down the mortgage.You need to do the analysis as if you are no longer living there.  

A quick rule of thumb: with the Purchase price being $220K and rent being $1800/month, it doesn't even meet the 1% rule , if it were to be rented for 1% (220K x 0.01= $2200/month), it would most likely work out for you but this doesn't seem like the numbers work.Long story short, no deal- unless you can raise the rent and/or lower your PITI.

As far as cash flow, you find a market with low entry & cost of living, as this will reflect lower renovation cost.