@Bill Jacobsen , What do you normally use for your vacancy/mngmt/repair costs?  

Bill,Typically a lender is going to look at three years P&L and Balance Sheets for the property.  

Bill Schrimpf  You make a really good point in the sense that a buy and hold is less likely to cripple me financially on a first time purchase than a fix and flip.  

I don't mind starting out and doing the leg work just to get my feet wet and experience as long as its worth my time and gets the bills paid. 

Example: Bill is entering in a RTO with Jeff.

Bill thank you for reply,We are not really looking for a hard money here, we have our own reserves which we could use with a bank loan approved at 5%.

I have the management company pay all the bills on the rentals. 

If it was in the previous tenant's name, give the utility the previous tenant's forwarding address so they can bill them. 

Originally posted by @Bill Gulley:You need to meet folks there and get to know them.I'm not sure I'm buying the valuation you are suggesting, if homes sell for 10K even with repairs I doubt they would hit 100K, not without 80 or 85K in materials and labor.Some vets are on drugs, not all, I wouldn't even go there, it's not the general assumption.Sorry to hear of your MIL, but I wouldn't bring that up either, others may perceive you as being disparate and to negotiate a deal you can never appear to be disparate.Find a partner, most likely someone who is in the area working on a house today could be one to cut a deal with.Get an option on another property, you don't have funds to be messing with auctions.You could go to the auction too, just to meet other investors who buy, you offer the construction side on terms rather than hourly or contract for the job.

Neighbor is saying that his water bill is $220 and otherwise it is $60 per month.