With that in mind, I would save most, if not all of the cash flow until you have enough to do the renovation.   

Check out these two articles that provide a good overview of the factors that affect qualification and loan amounts:DSCR Loans: What Are They And How To Get The Best Termshttps://www.biggerpockets.com/...DSCR Loans: How To Use Pro Strategies To Save More And Make Morehttps://www.biggerpockets.com/...

If it helps save for the next deal or you need working capital for this deal, then I'd say do it.

First off, kudos to you for building up the savings and diving into the multifamily market with an FHA or Fannie Mae loan.

My former boss lived in trailer like 25 years ago, and saved thousands before buying a real home.

If you are priced out of your market you can save for a house hack there or an out of state investment.

Another tip here is to let them bring their own linens (fairly common) so you save money that way! 

I’d say a save MINIMUM would be if you could earn that 5% return with 8 months of rent it’s better than the bank.

     * House is a 2699 sq/ft Single Family Residence| 3 beds, 3 bathroom | Built in 1956 | NO HOA     * There is a chance I could pay only interests so I can start saving some cash for the incoming maintenance and annual payment equivalent to the 12 monthly payments (~$5,029.77 per year during the balloon period)The advantages I can identify in this deal for me are:* Lower interest compared with traditional loans* Lower down payment compared with the ones compared for traditional loans* House is technically ready to be rented (waiting for the inspection) * Forecast - 3 yr growth (appreciation) is expected to be 8.1 % (Bigger Pockets)The disadvantages I can identify: * I am still vulnerable to foreclosure if sellers don't make mortgage payments to the bank.* Refinancing issues at the end of the Balloon Payment?

Some owners may misunderstand and choose to replace the pipes on their own, saving the EPA some time and money.These pipes were installed over 100 years.