IMO, this is a far stronger initial approach because: 1) It costs you nothing up front. 2) It is going to prepare you, because it requires you to talk real estate with all sorts of people, and negotiate terms of a deal on how you will compensate them for helping you find what you are looking for. 3) It amplifies your presence in your area, extends your presence to other areas, and naturally helps you to further your network. 4) It generates leads for more targeted marketing, which tends to have better results than "shotgun" mass marketing.  

Would that be something along the lines of an option to extend the terms or something similar?

If you're looking to lock in low rates and don't plan on living in the house for too much longer, I'm a fan of ARMs (I'm also 27, therefore not likely to remain in one place for an extended period of time at this point). 

Extend your lease-up schedule and lease at lower rents.

I just want to add the pro here is IF you moved forward, you will have a paid off multifamily in 15yrs.If the purchase price was lower, rents raised, and mortgage was extended to 20 to 30 yrs this deal will cash flow better but if your looking to cash flow positive from the get go then, no this deal surely won't, but your calculations look right :)

Would the siding have to be removed and then replaced so the side of the house doesn't extend out farther than the windows?

So it is still a loan extending money to the wholesaler with terms.

Dwelling Fire Policies usually come in a range from Fire (least) - Fire, Extended coverage & Vandalism and Malicious Mischief (good) - Special Perils (best coverage). 

BP taught me to get a good team together and work with them to extend my reach.

Construction costs are way up right now, and I would bank on $250/sf as well as an extended schedule. many contractors aren't taking such small projects on right now.