* 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?

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

List of all items remodeled and how much they cost and the comps in the area (some appraisers come from out of the area and you know best what the comps are and numbers are).Other option: if the numbers turn to be tight and you cannot refi, I would think about selling it lower and taking less on the deal to get your hands washed from the project.

Costs ran significantly over on both of these items and not being in the area it was not possible for me to add my experience in renovations to lowering them. 

Invest in a relatively close, lower-cost market.

The barrier to entry is lower so they seem attractive, and to the person who knows what they are doing, they can be very profitable.

What are some things I can do after going under contract to lower closing fees?

The higher the risk, and the lower the DESIRABILITY, the greater the cap rate.First  we need to lower the $85k “net” to probably $60k to account for property management.  

@Travis Smock A cost segregation study could benefit your 6-unit property by accelerating depreciation, even on a lower-value property like yours, especially with low land value.

.- My Resources / Constraints: I'm in a by no means unique, but perhaps less common situation for those getting started; I'm a somewhat senior software engineer at a tech megacorp and should be able to save a couple of down payments per year for lower priced houses (100-200 in my area), or perhaps one medium priced house (300-500).