Giving away the place cheap only creates more work for yourself screening lower income individuals, and attracts scammers.

You can get away with using 5% for Class A tenants, but we use 10% for Class B and lower. 3) Tenant Payment Performance: you didn't mention this, but it is important!

Hey Paul, any other tips on what you did to lower your cost per contact?

Then use the extra roommate rent income to pay down your mortgage and look to refi to a lower payment in the future (3-5 years) - so it cashflow when you move out.You could also choose the smaller unit and STR the other unit to generate more cash to pay down your mortgage and refi, so it cashflows when you move out.Bottom line: you'll have to get creative to solve your cashflow challenge!

The first question is, can I use a second home mortgage (10% down and lower interest rate) for this. 

I am assuming I should only apply for one loan approval since pulling my credit score/history will lower my credit number. 

The paid off property is an attractive and way lower risk / less work investment from my seat.

You'll then see that delinquency rates are:- At their lowest point since 2006- Historically on the low side of normal - On an overall downward trend for the past 4 yearsIn fact, excluding the artificially propped-up mortgage market of 2004-2006 during which delinquency rates were slightly lower than they are today, bottoming out at 1.41% in 2005, there are fewer mortgage delinquencies today than at any time in the past 33 years.By the way, when these scant 1.73% of homeowners become delinquent on their mortgages, they overwhelmingly have the equity to be able to sell the home at a gain if needed.

Getting it under market value would be a bonus.So, would using an FHA 203k renovation loan, which would allow me to buy something unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.

Basically, you're saying your intent is not to move in, but with owner-occupant loans for lower downpayments, you will sign a statement certifying your intent is to occupy the property.