He's going to pay boot tax anyway. 

So I looked at some local markets like Sacramento where I'm from and familiar with the neighborhoods but the cashflow would be so negative that I'd be paying out of pocket every month.Now I'm more inclined to buy a single family in KC as it seems the rates won't drop anytime soon so would like to get in the investment game sooner than later and hope for a rate drop in few years to refinance.I have been looking on Zillow, and recently connected to an agent to run numbers and seems I could make about $100-$300 after mortgage payment and insurance.

if it is just the financial side holding you back - let your bank be your partner… or see if you can borrow the money from a family member who knows and trusts you -  without actually partnering with them on the control of the deal itself (pay them interest - or even bring in on the lien to secure their position the first time) - but let them be the finances and you control the project. 

Thank you for the insight I plan on attending more RE meetups networking events, as well as begin improving my trade!!

I plan to gut renovate an entire multi-family property.

We had many meetings with the borrower regarding their history in real estate development and their intended execution plan.

Paid out-of-pocket in payments and completed a Quit Claim Deed, plan to build another small rental on the same property.

Living there I happen to know several tenants aren't paying and there is no restaurant currently there and hasn't been for years. 

I'd recommend getting a finance plan in place before buying.

If you have to change a water heater, which now costs around $2000 in Colorado Springs, that is a large unexpected expense that the owner has to pay for.