I am currently analyzing deals in Providence, RI and I will be using a FHA 3.5% down loan product and owner occupying. 

However, understand that they first person to suggest using a tk company was a local San Diego investor.  

Using a Gross Rent Multiplier of 5 it would be 252k.

I would personally not recommend using a contract on a napkin or a standard template you find online.

Can someone inform me of the dangers of using a non-licensed contractor for a rehab?

After buying with cash from your HELOC or otherwise you can finance out at only 70% LTV of the appraised value and for now more than the original purchase price.From a cash preservation standpoint you are better off using a private loan at 70% ARV that covers purchase + rehab.  

this is a good problem to have, but it's becoming more and more of a headache.With rental applicants I started off doing a traditional online application using a vendor who offered upsells for nationwide background checks and so on.

I have no issues at all with using a portfolio loan for the right reasons. 

If you're using a PM you're over $600 in the hole each month.Now, some months you're only a little in the hole.

They occasionally rented it out using a mgmt company.