The advantage of the SBA financing is that you will only have to bring 10% to the table, but you will also have to show with the existing building and your Adjusted Gross income that you have the capacity to pay for the new debt. 

If you had 50k in credit card debt for business startup costs (not real estate) with a 3-4-year plan to pay it off, high debt utilization in the meantime and a 620 credit score - but wanted to start investing in rental properties - what would you do with 20k that falls into your lap?

Their only other bills are their mobile phone and car insurance, and with the rest of the money they save on rent, they can spend it on other priorities, whether it’s expensive toys, travel or paying down debt.

My budget in the beginning was really tight because it was based on the money we made at the time and debt payments. 

Best decision I ever made. they went on to basically lose the portfolio as 2 steps one back.. theft  non pay trashed units.. simply not a sustainable model.I then switched to no debt A class only takes a few of those to hit that magic 10k a month NET cash flow with basically zero drama.. and only a handful of props  to manage  .. owing 50 houses has major work load if they are section 8.. 

If they wanted to pay for the updates and agreed to restore the property to its original condition (if you wanted them to) after they left, you would need to allow it. 

Agency debt is mostly teaser stuff that very few people qualify for, so I'll not mention those rates in this post. 

That may cause you some restoration work if it is going through a finished basement.

You need to account for debt paydown, tax benefits, and depreciation as well.  2.

Eliminate debt, establish a budget, and save.