However, I would be carefully to choose the right neighborhood and right location, instead of jumping to an unknown neighborhood randomly too soon (in case it is a rough neighborhood).  

Older homes typically will have higher capital expenditures, but if a home is well taken care of you can do well on them.

I believe I could get 100$ a night at least on airbnb and there is a company that will take care of all management for 20%.

I was hoping to find an investor that would purchase the home, I'll take care of contracting and do some work myself, and then split profit after the investor is paid back, rather than having an interest rate pile up every day. 

You have to structure carefully with detailed terms and scope of each person role. 

Especially in a tenant-friendly state, you need to be careful.   

Also, be careful when it comes to crediting tenants through rent.

I’m wondering at what point do you say this property isn’t profitable versus this is really bad property management who doesn’t care and lost this owner a lot of money?

While I am house hacking in it, my cash flow would be -$354.61 per monthI do have enough savings to take care of the 5% down payment, closing costs, and water heater issues, with enough of a reserve left over for 4 months of full mortgage payments, just in case it takes a long time to screen a good tenant.

There is bound to be a few in and around Indy that service this market.I'm not sure why the seller cares about your LTV, but you will most likely need at least 25% down.If you share the rest of your numbers, the community will be happy to double-check your math and offer thoughts.