Plus you'll be paying fees/membership here that it sounds like you might not be benefiting from.  

A simple as it sounds there are things you might miss.

Again this is coming from a newbie that doesn't have experience with this but right off the bat a 15% cut sounds ludicrous.

You can refi as soon as you qualify, which sounds like it's only a few months away.

It a very nice looking remodeled 1955 house and is sounded by other businesses and some residential house. 

But it doesn't sound like they want to sell.  

Sounds to me like the landlord has had a bad experience with tenants trashing houses and wants to cover himself/herself in case of losses.

@James Thomas Nakashian Unless you have separate utilities that the tenants can each put in their own name (it doesn't sound like you do), you'll simply need to adjust the rent appropriately for a utilities included apartment.

Sounds interestingWould you mind saying what area has houses for 25k including fixing my what need to be fixed?

Your plan on flipping one for capital and investing is solid but a word of caution: based on price it sounds like it may be in a D area so harder to find quality tenants.