Assuming we get very favorable financing, it sounds like the plan would be to use all the $50k to get the best house we can in a high demand area, dont really worry about fixing it up, and then start renting it out as soon as possible?  

I must, however, satisfy some stipulations:  1) my offer must exceed the previous by 5%  2) I must put 5% down with the county clerk at the time I make my offer 3) I have 10 days to close 4) If i fail to close I forfeit the 5% down payment and also am required to make up any shortfall between the eventual sales price and the original offer 5)  My offer can in turn be upset by another bidder or the original bidder.Long story short there are too many questionmarks for my taste at this point. 

Good customers breed good customers, if properly "feed" to do so. 

It would be a separate loan from EIDL and it would be a breed of SBA 7a because if bends the existing rules so much.