You can go as low as 10% down and there are programs that allows this for first timers with good credit.3.

This is pretty clean.Scenario 2:  Your partner has owned the house for 15 years and has been taking accelerated depreciation, so the book value of the house is very low. 

Quote from @Tyler Garza: Deal :Duplex Home2 beds / unit2 baths / unit3,000 sqftAsking 300k60k downEst rent/yr - 31,2005% Vacancy20% Op ExpenseMortgage 240k assuming 7%Results: CF - 6,600Cocr - 11%Cap - 8%Looking at this for a buy and hold and trying to determine if I am analyzing this right@Tyler Garza I can get to your COC of 11% and cap rate of 8%, but since I don't know your loan payment or amort, I'm not sure how you got to CF of $6,600 - I'm getting arond $4,600.And a couple of things jump out at me with your assumptions versus most of my CFO clients: 1) a 5% vacancy rate and 20% Op exp margin seem a little low, 2) an LTV of 80% LTV (with a 7% interest rate) seems high unless you're house hacking, 3) Depending on the location of the property, the $1,300/month/unit rent may be low.

Install landscaping that super low maintenance and reduces water usage and looks nice.

Idle money is the quickest path to low returns and does no good for anyone.

Getting a pro account at HD or Lowes might be a solution. 

Your thesis is basically rent low and accept less desirable tenants so I don't think that is the best thesis to base an investment off.

I think this is a calculation a lot of homeowners are making right now--especially if they have a low interest mortgage, equity, and their house will cashflow as a rental.The choice is a personal one of course, but I think your future self will thank you if you pull out some equity from your existing home with a HELOC for the downpayment on the next house and a cushion renting your current home, use a property manager as you have other things to do, and buy the next house and do the same thing again.

One can do well with low price high risk but max leverage and thinking our going to sit in your barcolounger while you let your tenants pay for your retirement is not reality unless you live there and work it basically daily.. 

The instruments needed for the transaction will be state specific which means you should have someone from California chime in with resources who can provide low cost documents (as these will be boiler plate).