Accreditation today has a seemingly lower bar than it was, say, ten years ago due to inflation.

These include the actual cash flow (NOI), Your net cash coming in after expenses and allowancesDepreciation - the tax benefit that lowers your taxes. 

This typically means lower down payments and better interest rates compared to traditional investment loans.

In San Jose I think that lowers the school fees cost/taxes etc.

When your rehab is done, hopefully those rates are lower!

If the answer to both added questions would be "yes", then you have a potential goldmine here.Combining the seller's concerns, and the reality of a big down payment being a negative to the seller (see Q: 1), you should be able to set the terms, with a lower DP, and controlled interest rate, to have this property CF and,...be able to sell the package to another REI down the road,...as long as you buy this using an LLC (a new one). 

As for a downward shift you can always lower your rate (underwrite a worst, middle and best case scenario), Make sure your rental stands out from the crowd (easy to do in Hawaii since most owners don't reinvest in their property).  

But look out, lower cost management companies make it back through add-on fees, so scrutinize that agreement carefully. 

However, if you have a reason to refinance (lower rate, more cash out) then it would be a much safer bet to get a DSCR loan and refinance into your LLC.

Time the Sale Strategically: Selling the property in a year when your income is lower can place you in a lower capital gains tax bracket, reducing the tax rate on your gains.8.Deduct Selling Expenses: Costs associated with selling the property, such as real estate commissions, legal fees, and advertising expenses, can be deducted from your sales price, thereby reducing your taxable gain.9.