And the price in the market was lower so therefore easier to obtain in an all cash auction.

If you spend money but that money doesn't allow you to raise rents or lower expenses, then you're just spending it to spend it. 

I can't comment about the franchisees that you mentioned, but with the bit of experience I have, I would agree, low income is not where I would want to start.You definitely need to have the right personality to handle lower income rentals.  

The lower the risk the lower the interest rate.  

I read that cash out refi is only worth it if the interest offered is lower than the original one. do you think I should accept this option, considering that i also have to pay the refi fees?

However, I have been wondering if I should get into the game sooner than later, attempting to find creative financing, or using a first time home owner FHA to lower my down payment. 

I would increase your CapEx and Maintenance expenses (I use 10% each for older, lower valued properties), but I err on the conservative side. 

I know there are conventional loans the require 20% down, but are there any other loans that require a lower down payment such as 5%-10%.

These leases should also be recorded in the public records.NNN leases are commonly used for commercial transactions.

If you try to make the tenant pay that, good luck keeping them unless rent is lowered as well.