@Jerry Miller when you mentioned patch work plus a coat of paint for $1,550 it didn't phase me.

See you at closing and thanks for your mention!   

That is not an alignment of goals.The $100 minimum means their base fee on your $1,200 is actually 8.33%.If your scheduled gross rent is $14,400 ($600/month x 2 x 12)Minimum PM fee -$1200 ($100 x 12)Re-lease inherited tenant -$395One-month vacancy -$100 PM fee (and -$600 from your gross revenue)Fee to lease new tenant -$395 (you didn't mention this, but I imagine they would charge at least as much as the re-lease)So right there you've got $2090 in PM fees on $13,800 gross = 15%Now over time those lease-up and vacancy management fees will even out as tenants stay longer than 1 year, but if you just wrote in 8% for management, you should almost 2x that to get to reality, at least in year 1. 

one thing I would like to mention though, @Stephen Craul is that if you want to get first pick on off market deals you can't be making offers with all kinds of inspection contingencies.

@Chris Wilburn - I just talked with your contact and the detail you mentioned are legit.  3% down, no PMI, 1-2 unit properties with a max loan of $453k. 

The two (2) years mentioned above is merely their opinion or what they have heard, but nothing more. 

As mentioned by @Alex above, based on how much equity you have in your house, you will get a "Credit Card", whose interest rate is usually variable.

First of all you mentioned PMI which is mortgage insurance.

they mentioned that still one main meter which is 8in so its not going to reduce, i mean each tenant gets 140$ monthly which is ridiculous. any suggestion to reduce the water bill ?

It's not that easy to accomplish and usually involves advanced strategies such as bonus depreciation mentioned by @Logan Allec and asset segregation.The good part is that investor-friendly lenders will add back depreciation, not counting it against your income for underwriting purposes.