Overall, pretty awesome project and not very difficult to finance UNLESS the properties are very rural OR the rents are low in the area (this second issue is not as difficult to overcome). 

High quality partners in a market with relatively low purchase costs and healthy rents.

We were looking like crazy on this neighborhood because of the benefits at so low cost (NO HOA).

So, if you are able to find a cash flowing property in a low cost area you would realistically need $750,000 plus emergency capital of your own money to do a deal that has any chance of success.Most smaller medical office buildings were occupied by solo practitioners or small partnerships.  

As @Nicholas L. mentioned, you'd be ahead of the game with a househack or 2 in the next few years.House hacking will allow you to keep your entry costs relatively low i.e. 3.5% or 5% of the purchase price.

Turns out there are some low spots, and now I’m dealing with costly repairs.

Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?

I focus on the Midwest and have noticed MTR demand has been very strong around hospitals and corporate hubs—worth checking if there are major employers nearby you can market directly to.

. $30k should be more than enough cash to purchase your first house hack, especially if you're using a VA loan (0% down), although by putting 0% down your expectation for cash flow should be pretty low unless you're making improvements to the building.For paying off the debts, I recommend focusing on the credit card debt.

Is the 1% rule a thing of the “old economy” with low interest rates or am I just looking in the wrong markets for cashflow and should be looking for appreciation instead.