Also from the adds I’ve seen for these sorts of companies they say these lenders will lend at 4 percent or lower sometimes which is also unlikely

Going the FHA route is popular with the lower down payment needed, but also consider the occupancy requirement of having to live in the property for one year, and the inspection requirements being more stringent with an FHA loan.

I am looking to build the relationship between that area manager and myself so they tell me when they get a new property and I can start the leg work.

If I can get him to lower 300 range plus holding the note at 6-7%, I can sell it as I won't refinance for at least 3 years, so he'll get the interest money but within 5 years so he'll eventually get paid in full. 

Value add to me are items that will actually raise rent or lower expenses that ultimately raise the NOI.- Reducing utility expenses through either separating meters or if you can’t, convert all fixtures to low flow.

We could have a downturn between then and now, which would force interest rates to drop back to today's level or lower.

@Lawrence RatliffFirst off I commend you for the hustle, the ambition, and the huevos (Spanish for eggs referring to something else) to start your RE pursuits.but ...1) I agree strongly with @Justin R.2) I am not a big fan of any of the so called "rules" but the one that I use as a quick guide on ROI calculations is the 50% rule for lower cost units. 

Remember that the city officials, inspectors etc. all have one thing in common, they are human, have to put one pant leg on at a time and only have 24 hours a day to do this.  

If you got the property lower, then you may have an easier time to find a buyer.

This way you get to keep what I’m assuming is a lower interest rate.