I would say you need to re-run your numbers on this current deal and determine if your initial risk metric is still valid.

1 Check your sheet for mistakes on the formulas:Return on Investment (ROI): 15.76%  (Annual Cash Flow/Initial Investment)Purchase Capitalization Rate: 8.10%Monthly Net Operating Income: $439Annual Net Operating Income (NOI): $5,268Monthly Cash Flow: $205.50Initial Investment: $13,700 + Closing costs ($1,950)Loan amount should not include closing costs.50% Rule: 54.97% (little over)A 70K offer will lower your ROI and Cashflow (FYI) 

I believe that you cannot deduct taxes related to rental properties on Sch A under any circumstances, and particularly not during the initial rehab period.

Higher LTV might work but also calculate the time it takes you to recoup your initial investment and start making money... 

We initially opened an account with Equity Trust but immediately closed it, after I read many forum posts.We're going LLC Checkbook control route and still in progress with state filing and operating agreement.

First and foremost, you need to generate some income, i.e. get a job, so you can save up enough for that initial down payment, plus enough for closing costs, cash reserves (in case something breaks and needs to be repaired). 

Once you determine initial site capacity and feasibility analysis to  determine what you can build and that it will work financials you will need to compile a complete package for the lender.

From my initial analysis, I don't think the it would make much sense primarily because the property tax to rent ratio is too high to generate a healthy cash flow.

Just wanted to hop back onto my initial post and say that it looks like I was wishfully thinking about this, however, the EIDL seems to be an attractive option. 

@Mitch Messer - Great points made here in your initial post and follow-up responses!