My long term goal is to keep 1 in 5 properties(at a minimum) to create a passive income stream.Do you have some ideas on how to stretch the 200k in my situation or am I on the right track?

Please indulge me for a moment while I introduce myself and describe my understanding of the property:About me: My goal is to replace my earned income with income from long-term buy-and-hold properties.

While things were taken care of, not everyone is back to where they were, including lenders.So, these folks spinning the infinite system of buy, finance, rent and repeat don't have an understanding of loan limits or loan concentrations or concentration of income with the ability to pay.

I work full time, so up until this point my income has covered everything.  

-What's a reasonable credit requirement for this [lower income side] area?

@Nicholas MischThe ARM product was developed by bankers to induce folks to get a low introductory rate that they could get approved for based on their income and debt levels because of the lower payment terms.  

Income level also will determine tax rates.

She only has 1099 income and there is a house in particular she wants.

Show them the risks and benefits of a flip and the passive income of a rental.

Show them the risks and benefits of a flip and the passive income of a rent property.