Quote from @Frank Pyle: Obstacle is getting a 1007 with realistic long term rents. 

It will inspire you to overcome any obstacle standing in your way—it did the same for me.

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

. 😉  Lack of investment capital (money) ought never be the obstacle because if the deal is right, the money will always appear.Then, you’ll need great data sources both for identifying opportunities and confirming the facts.

However, he asked me to sign a one-year Exclusive Right to Represent agreement, as presented to him by his brokerage.His interpretation is that it applies only when he materially assists me, but I think the boilerplate brokerage language he was given reads much more broadly:"If during the term of this Agreement Buyer enters into a contract for the purchase of Property through the services or efforts of the Broker or Buyer’s Brokerage Firm, or by or through any other persons during the term of this Agreement" (emphasis mine).My concern is that, under my interpretation, if a fellow real estate investor wants to unload a property or if I get pointed to an opportunity by a former agent, colleague, or friend, this agreement could create an obstacle to moving forward with the deal.In the end, I didn’t sign.

Since this is my first project, I’m very open to any advice or suggestions—especially regarding potential obstacles I might not have considered.

His girlfriend, in her early 20s, does not have SSN nor does she have an ITIN and she's unemployed so she cannot get screened.

Also I understand the funds aren't available for the improvements so that is another obstacle that has me leaning towards price reductions to move on as soon as possible.The exit of lower tier SFH's is something very few investors care to consider when making their investments but deserves far more consideration. 

I plan on doing this model also so I would love to follow your journey on this investment and learn what obstacles you may deal with. 

You can write the best guide but people want information for credible sources so you might want to clarify all of that or it might be an obstacle all along.3.