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!

The ones I manage total to 20 bedrooms.These rooms rent for between $125 to $225 per week depending on room size and amenities in the room (beyond basic amenities may include: Desk, Tv, private entry, tenant controlled AC, additional storage).This month after padsplit takes their 14.25% cut of the revenue I am recieving, from the units I own, $15,230 from 3 homes.

Big picture, however, I am building a plan and team to invest in strong markets with lower entry prices to BRRRR 5+ unit multi families.

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. 

So you got lower prices and lower interest rates coming.

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