Just out of curiosity why that price point and why no loan?

The amount of the pre-payment penalty will be equal to one-half the net proceeds of sale, minus the accrued interest.

Out of curiosity, how'd you find that information?

(Ben Graham's "The Intelligent Investor" is perhaps the best volume on the subject), and I'll suggest that the core "value investing" philosophy is a direct corollary to the REI adage of "you make money when you buy, not when you sell", in that you make your money when you buy a stock when its undervalued and includes a sufficient "margin of safety" (itself the analog of a lender capping their exposure based on LTV).Patience, prudence, curiosity, and a desire to learn are hallmarks of a successful investor in any domain, and I'm with you in that I'll keep doing both :)

Out of curiosity where in MI did you buy?

If your primary home has accrued good equity, then you may want to take out a HELOC (Home Equity Line of Credit) to help fund your first rental. 

12% and 0 points, interest accruing on the full loan amount16.99% and 0 points, interest accruing on only amounts fundedAnswer: It depends.

Out of curiosity, where are you a pharmacist at?

Out of curiosity, and maybe to get a discussion going, what are your goals with real estate?

Out of curiosity I did a quick search and unemployment seems to be going down quite steadily ( http://www.towncharts.com/Rhode-Island/Economy/Warren-town-RI-Economy-data.html ).