It is in pretty bad condition (I can post pictures)- he said it would need around 30-40k in rehabs.

Someone formed those strips off a roll of vinyl-covered aluminum trim coil and caulked them into place when the old window was replaced.

At the very least it'd be nice to have a decorative panel that covers the side of the wall cabinet and microwave.

Then you are covered for "some" items. 

A screened in porch or covered patio probably is a worse place to start than if you were starting from scratch with a 2 bedroom with no patios

However, rents are low in my area, and wouldn't cover my current mortgage.

- I was hoping that this could allow an FHA 3.5% for her leaving plenty of equity ($92K) to buy me out and cover the down payment and fees ($30k to me, $14k down, $3k fees).

Red flags include..I want to move in early....I want to do a long term lease...I will pay you in cash....I will pay a double security deposit...I will pay multiple months in advance.....These are big reds flags that applicants will use to sweeten the deal to cover for something else..... its the carrot to lure you into the trap.

Criteria aside, I think being in a prime location, if it covers expenses and pays itself off, it's pretty good.

Currently looking at some fixer-upper deals and small multi-families for our next investment.Below are some pictures of our property: