So it's definitely possible to be successful starting out with a property like this, but you are signing up for the School of Hard Knocks approach vs. getting your feet wet with something in better condition.  

the details and conditions of how things will come together may come at a price... again i didnt get a chance to get close to my 2nd until i handed him a check. you know there are people who come out of pocket for mentorship who are very successful and swear by it. 

The best option is to put in an offer with conditions which locks you in, but also gives you an out if the conditions aren't met.

Property can rent for $1,250 - $1,400Property is in good condition but it needs cosmetics.

In fact, sometimes local market conditions mandate looking elsewhere.

@Will PritchettAh yes, I had just read that part of the book where he details that the bank will sometimes not loan because of the condition of the property.I guess an unanswered part of my question that may have not been clear is, what if I go to refinance after I buy with the FHA, but do not have enough equity to leave in the deal unless I shell out more money.

You may have trouble finding a hard money lender willing to lend under those conditions.

You need an actual budget based on condition, guesstimates are usually fine, as long as you have a list of itmes they will average out. 

I finally found one that looks good to me based on both the numbers (rents just about meet the 1% rule) and the property itself.Details: 3 units with 3 bds/1ba perSale Price: ~350kCurrent Rents: 1100 per (avg: 1446 for the area and median: 1350)Property Managers: 7-10%Property Condition (1-5): 4The place cash flows with the current rates and could obviously do much better with higher rents.Anything else I should consider? 

The condition of his unit is in bad shape & needs lots of repairs.