@Danny Cohen, no probs, hope you'll find your match.

The household formation rate has still not picked up enough after the Great Recession to match underlying population growth.

@Richard Bradshaw There is definitely no reason for doing flip grade renovation if you plan on renting it out for a while. take a look at the surrounding rentals and match that just make sure your major repairs are taken care of and structurally the house is sound.

The deal we worked out is that they will match me 50/50 on dollars put into properties we bought through an Incorporated and I would own 75% of revenue/cost, and they would get the other 25% and rights to manage the properties to grow their PM company.  

Once you locate renters or sellers that are willing to do lease options, then it's just a matter of matching buyers to seller rather than running a marketing campaign for the seller.

Then stain and varnish to match the floor.

Updating it will attract better tenants, and that may lead to less turnover.I would look a new light colored cabinets, new countertops (preformed laminate, nothing expensive like granite) and new (or used) matching appliances for the kitchen.  

Basically the program works like this:-You qualify as a first time home buyer (haven't owned a home in 3 years)-You open a savings account for a minimum of 10 months-You deposit monthly into that account (I believe for a 10 month plan it is $187 a month)-Once you hit the 10 month part they match your funds 4:1 for down payment and closing costs (max 7500 on their side).You saved $1870 they put in $7480 and you have $9350 to put towards your first house.

But the problem is that we have a really strong offer from someone doing a 1031 exchange and we have to match the % of financing / free & clear that he exhibited in his previous transaction.

Right now, a 170-230 is a good range for what you are asking I am assuming some ~200/fixture to match tile and all. gut/reconfiguration on existing building could vary, or it might come close to the new construction/addition, raising ceiling is not that easy, but it is not rocket science either, you are raising the frame itself.