You are correct, local banks would go in and sit with them and go through rates and financing and understanding the payment.

On top of that you can find some great deals on TLC properties that need a little work but offer a strong ARV to expedite your initial cash back out with room for the next REI down payment.  

Here are the numbers:$30k - avg monthly income3 options for rent vs buying$12.5k - avg monthly payment (20% down) on $2mil home$6.25k - avg monthly rent on $2mil home$6.25k - avg monthly payment (71.5% down) on $2mil home3 options for return on capital:7% - avg yearly return on 71.5% down payment (assuming 5% avg yearly appreciation in SD)10% - avg yearly return on from S&P 500>10% - avg yearly return on investment property (just an assumption, but I think you are all here because you beat the stock market)First, the $12.5k monthly is very intimidating and beyond what I should be spending on shelter (a no-go for me)

My main account has all the rents deposited and all expenses deducted such as mortgages, some utilities and an electronic payment app connected to the account to pay contractors.

My net rental income was $300 to $500 a month, not enough to cover the mortgage payment (PITI) so I'm negative on what was supposed to cash flow on paper.

You will need to put some kind of down payment upfront.

Here’s a quick breakdown of our financials:Operational expenses (excluding mortgage): $33k (Jan-Dec 2024)Annual mortgage payments: $58kTotal needed to break even: $91k+Income earned this year: $80kClearly, we need to bridge a gap of about $11k just to cover our expenses, and I’m exploring options to increase profitability.

So my inclination is to compromise her 50% request payment to 25% as stated by Mark and Martin. 

2) Your credit score3) Purchase price and down payment amountI would recommend shopping rates with a few local mortgage brokers.

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.