Additionally, the market is reaching the slower season so the anticipated rent has been slashed dramatically.Current:Price: 153k ($42k into deal)Anticipated rent: $1,650/monthOperating expenses: $8.5k / year (includes management, cap ex, vacancy, taxes, insurance, etc.)Cashflow: $2k / yearCash on Cash return: 5%So what would you do?  

Assuming you agree with that statement, then you would be buying at the top of the market, which would be exactly the opposite of the saying, "Buy low, sell high", but you have the convenience of potentially waiting out the coming correction and earning some good money on your property while having your tenants pay down your mortgage for you.  

As 'seasoned investor' you would agree CONTROL of your asset is your number one path to running a profitable asset, the moment you tow a disgruntled non-paying Tenant's vehicle which may by all accounts be their most valuable possession, I would like to see just about how much control you have over your asset.

As such I'd like to find someone knowledgeable that has experience either wholesaling or renting out properties with Section 8 or in low income areas.

Also you can buy the long lasting carpet and put it in the low traffic areas (I.e.

Yes, I always install it if it is missing or broken even though my property is in the low end range property.

I plan and hope to get a low down payment amount with a first time buyer FHA loan.

And all other low down payment options are off the table.

I believe you have to wait for the seasoning period to be complete and/or move / have extenuating circumstances.

In-fact, if you are buying residential (1-4 units) and willing to live in one while you reposition the property, you may be able to manage a down payment as low as 5% (SFH & duplex) or 10% (3 - 4 units) ... whether your new "business" will carry itself at 90 - 95% LTV will depend on where you live and how well you purchased.