I have also heard when going to a local bank to get a portfolio loan you should have a business plan to show the lender and convince them that your investment will produce positive returns resulting in a low possibility of defaulting on the loan. 

If I am understanding the above correctly, does this mean that we should buy a more expensive property for our first, perhaps a triplex with three income-producing apartments, since that is our one opportunity to pay only 3.5% down?

@Charles Worth,Just curious as to why you think it might not end well.No investment is guaranteed to produce a return and all investment involves risk, especially the risk of loss including, but not limited to, the amount invested.

Whether a property can produce positive cash flow in the immediate or near term is a secondary consideration and not considered a deal-breaker.

And you want to know how long it will take for the bank to recognize the income that property is producing and use it to write you a loan.Immediately. 

Ultra-competitive, but it wouldn't be that way if the market wasn't producing.

You have to be comfortable with the income thtat it will be producing for you.

So in my mind I'm not taking a hit for 30K I'm taking a hit on what I know the 30k can produce for me! 

Your numbers may vary.As far as SEO goes, one of the best ways to drive traffic there is to produce relevant local content.

Will the rents you get in cover the mortgage plus expenses (portion set aside for future repairs or cap-ex, maintenance, insurance, taxes) *and* produce cash flow?