I ran into a similar scenario for a STR we have currently.

We are surrounded by the culture that insists we can do business with each other and not only become friends but family and conduct business long term!!

My mind was set on purchasing a home with an FHA loan where I would get the 3.5% downpayment but I ran into an old friend of mine who just recently invested in a apartment in Far Rockaway NY (not too far from the beach).

well for me to be honest and transparent in this adventure of mine putting in offer ever for a house this time it's my first wholesale offer coming from the MLS and although I have watched and listened to almost 400 episodes of the podcasts for bigger pockets the state investing side of it and I ran my numbers through the whole sailing calculator to give to a flipper, I'm always unsure of myself, simply because I did my numbers conservatively not only for overestimating a little bit on the rehab but underestimating the ARV that way there's that wiggle room on both ends and by my calculation a process like this the end result is 20 grand for my back end buyer. 

I ran it through the calculator and the estimated ROI is around 5%.

I ran numbers based on what she told me, plus an additional $10k for updating and my 70% number comes out to be $163.

I ran the numbers and place on offer on it, it (somewhat suspiciously) had another offer come in higher an hour or so after I made mine.

But in the end, if it comes to it, I also recognize that you don't need credit when you have cash (despite what this culture tries to instill in us). 

@Jeff Smith I ran the numbers on the refi and it'd save me $43 dollars a month and if I brought the rent up to market value I'd definitely be in a a little better position in terms of cash flow.

From my personal experience having grown up with parents who have owned real estate in the Bay Area since before I was born and now a landlord in the Bay Area myself, being a "low class" tenant has really nothing to do with your financial status, but rather one's personal ethics, morals, etc...Throughout the years my family has had tenants from all walks of life, from all cultures and financial backgrounds.