What type of mod bit is he recommending a hot or cold application?

Matt,Congratulations on finding that smoking hot deal. 

so you got both sides of the coin  see which one fits your risk profiles.. then move forward. as you say lots of ways to invest.. actually many of my clients prefer to be the bank.. and take all of the tenant and reahab risk out of the equation.. its quite hot right now .. and pretty appropriate for the smaller investor weighing what do to.. 

I agree AC repair emergency if it's too hot.

Also, how the heck do I find someone like this here in Nashville, TN?

Sometimes, even a cash buyer can have trouble putting in the winning offer when the market is hot enough.

Don't see it as an issue as long as everything else checks out fine...i.e didn't lose their house to foreclosure etc.No doubt I would ask why they are renting now.I just rented to someone that was in the process of selling their house juts 5 miles away..... place was too big for her now, and the market is so hot she wanted to take advantage of the profit she could make, but has no intention of leaving the area due to family and work etc, so at best she would be selling and buying in the same hot market so it would be a "side move" rather that moving up/down in a property.

We ripped off all the old siding, insulated the walls, Tyveked the whole building, added all new siding, added two furnaces and two hot water heaters and added FOUR new bedrooms. 

We have two small kids and we aren't there right now cause it was getting too hot for them.

So, for example, lets say your 1 bd 1 bath apartment in Panama city beach or Nashville  costs 150 k and your monthly mortgage plus taxes and hoa fees etc is around 700-800 dollars (assuming 20% down payment).