I am in Pittsburgh and there are multiple large hospitals within 15 mins.

In the current environment, my under writing (that most would consider to conservative) depicts large negative cash flow after a maximum LTV refinance.- cash out refi loans have higher rate than if cash out was not occurring.  

I know they're a large wholesaler on the east coast, I'm in Atlanta, GA.

This deal that you mentioned sounds at first blush that it's dead in the water because of the large deposit.

Yes I am trying to build a large enough rental portfolio for the residual income.

Often you can do large lot sizes vary cheaply but smaller lot sizes require a much more stringent permitting and approval process and significantly more money.It might impact your decision on what you develop.

Give the cost of money these days is around 7%, it would definitely be nice to have a paid off rental.Like Tim said, the 7% is largely irrelevant because your tenants are paying it with the exception of vacancy periods. 

It's worth reaching out to Corporate Housing Groups (most HR Departments at large employers have this division as well as Relocation Companies that you can find via an internet search) to offer your property as a 30-day furnished rental.

Some carriers offer loss assessment insurance, which can come into play when the HOA experiences a large covered insurance loss, such as a hail storm requiring roof replacement or a fire requiring building replacement.  

Don't put large sums upfront.