An FHA allows us some flexibility which is nice because we can lay down a lower down payment and keep some of the money in reserve in case of emergency, but the appreciation of a home in Detroit with a conventional loan is much higher.One other option that we have explored is buying a rental for the purposes of Airbnb in a different state.

We have a nice emergency fund that I am comfortable with, but not enough savings on top of it for a 20% down payment on an investment property.

@Larry LongJust how much money do you have available to invest in this property AND still have a reserve for emergencies?

My only options is FHA, due to a credit problem I had several years back that I’ve slowly bounced back from.To provide context, the seller is selling due to family emergency.

Then there's emergency egress and light/air requirements for bedroom/living spaces.

Everything from lack of patients to work style to damage to your reputation can happen in a short period of time and cost you far more in the long run than a few thousand dollars for an emergency repair.

Declares emergency, effective on passage.

I just went through this on an 8 unit one I've got north of fort worth and they will look at "Debt Service Coverage Ratio"--most banks want you to have some cash in the bank (in case of emergencies) plus a DSCR of 1.25 or better, and often they want to see you still have some money invested in the property (from fixes, make readies or whatever)1.25 is NOI/loan repayment.

An Emergency fund is highly recommended in the beginning, and will be absolutely required by lenders as you accumulate rentals (but it will be called “reserves.”)Take your time.  

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