The reality is many lower rate offers have a higher price or are $hit properties, but not all.If you are paying extra for owner financing make sure that the discount rate easily justifies the purchase price.  

I know that my COC my be lower, etc but my main concern since its my first property is being cash flow positive.  

.$85 sounds steep for QBO I thought it was lower maybe you need to get the accountant to send a discount promo?

But I do appreciate r this sentiment as it does lower competition in the area :). 

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.

I've been watching Chad Carson's videos and his approach of accumulating more properties than you need, then start using that income to pay off mortgages and cull the lower performing properties makes sense to me. 

If rates drop in the future, refinancing again could lower your payment, but it’s good to make sure the numbers work now just in case.

In terms of the second scenario, the upside I see is the option to get a different kind of loan (say, FHA with a lower down payment and other assistance programs for K-12 educators like me) since I'd be getting a new primary residence instead of a second home.

Do you buy homes that do not satisfy this rule, or do you just make lower offers so that you adhere to that rule?