If you are in a location that is an attractive "reunion" or "bachelor party" location, a large home can be very profitable.

No whiz-bang profits, but fairly steady growth.  

Assuming we break even once it sells, or make a little profit, we will be able to pay off all debts and have $60K-$90K back into savings to play with.

Out of curiosity what is the driver for additional cash down if I pursue something over 4 units?

If there is any gain after the reverse mortgage is paid off, it is tax free up to $250,000 of profit.

I've blogged about how much I hate dealing with banks, love the owner financing option, but I'm learning the benefits of really developing relationships with bankers, especially as you pursue additional deals.

I only ask because I managed a profit center for Lumber Liquidators for about 2 years and I was able to get 4 and 5 mm click vinyl for $1.59 before employee discount. 

The ARV, after repair value, minus the repairs minus “costs” ( closing cost, end buyer profit if wholesaling, holding costs etc.) minus YOUR desired profit equals your max allowable offer, MAO.

I can still sell at a profit and after rehab it cash flows very nicely. 

Try looking at:The Best Types of Markets for Profitable Turnkey PropertiesandWhat to Ask When Working With a Turnkey Provider