My dad and I operated a small sawmill in the other building On the property.

It looks like i'll have to deal with the bureaucracy which is going to delay me for weeks, seems like they are operating 30 years behind as far as technology and communication.  

Investors find it uneasy knowing the operating partner (gp) will have little skin in the game and are less likely to invest.

@Julie MecheWelcome to the site.Others have provided solid suggestions on were to go.You have a relatively small amount of capital so I would have to agree that your limited to one of the lower priced markets such as those in the midwest.Whichever market you choose the most important thing is to meet the companies that operate there and drive the neighborhoods to make sure you are comfortable with both.

I own and operate an internet advertising agency and I think I see a niche where my agency's skills could be profitably employed. 

The worst that could happen is that it gets sold out from underneath you, but even then the only thing you're out is the time you've spent thus far marketing it.

you do not want your funds to be used to cover operating expenses if they are not reasonable. 

Below is my analysis:Assumptions:3/2 rents for $1900 (varies between $1800-$2300 depending on location/lot size)3/2 ARV $300K (low end of market)Hard money purchase @ 11%, 4 points3 month rehabPurchase/Holding/refi costs ~ $20kRefi @ 7% 30yearYearly operating cost $6000 (includes property taxes)Unit is rented out immediately at completion of rehabNumbers after purchase:Rent: $1900Average operating expenses: $500Minimum cash flow: $200Left over for Mortgage: $1200Refi max: $180kLTV: 60%Numbers for purchase:Hard money max: $160KRehab: $20k (out of pocket)Purchase/Holding/refi costs: $20kMax offer: $140k <----------Purchase price to ARV: 46.7%How do my numbers look?

Do not operate in your name.2.

Right now both of our properties are in our personal names and I operate under the LLC with my tenants, payments, maintenance, etc.