. - Buy using hard cash, - Refinance my other properties to get the cash back + get the rehab fund, - Rehab of $30,000 to increase it's value to around $230,000- Rental units of 50 units with nett cashflow after expense and mortgage of $1200- Repeat: finding another opportunities with the extra money that I got from refinance Conclusion: I got the property with 0 cash invested (though short term cash is needed & using other property for refinancing), get $1200 / month (still in progress).

@Desiree Maya As the article you linked states, if the FHA approval has expired then the lender needs to confirm that HOA delinquency is <= 15%, and investor ration is <= 50%.

Using 50% as a guide may give you an inaccurate analysis.  

For a 2/1, I received these quotes with permits 14k electric,  8k furnace/duct, 2k central air, 2.5k floors sanding/ synteko, 10k bath,  12k kitchen, $30/$50 sheet of drywall,  3k paint,  roof was about 7k, demo 3k, concrete demo/new $12 s/f, windows $250/$400 depends on brand, then GC fees,  etc. 

It depends on how you split the revenues.If the house is free and clear, you two should decide if you get to bank all the money after paying expenses (taxes and insurance) or if you have to split it somehow in favor of your rehab work or just 50/50 the whole time.Also, if your friend decides to sell it year 2 or 3, and you still haven't recouped your rehab funds, do you spit the proceeds of the sale?

When does the 180-day rule begin? 

Back to the property management company scenario - they manage based on your paperwork and your rules.

@Soulo ZampleYou need a lender to tell you the rules.

Deficiency rules vary state by state.

I'm not a rental property owner and know nothing about them, but everything I read says 1% rule... rent should be 1% of PP. at $230k with a $1500/month rent... is this even a good deal?