With loan extension you might have to come up with extra payment to get DSCR in range lender will approve.That is why to go through this exercise NOW and if you know tenant wants 300k TI to extend and bank wants 300k to pay down estimated balance when new loan placed you need 600k to come up with.

If you want to buy and hold, you will need at least $35K-$40K for the down payment.

32k or even 42k on a half million dollar house doesn't sound all that good.What's your projected cash flow after all your expenses including a likely higher mortgage payment than the current owners?

Obviously, the rules will differ from state to state.The most successful buyers have trusted bidders with cashier’s checks in multiple denominations (for cash sales) and the actual buyers have field runners and people to monitor multiple prospective properties at a given time and check sales status for postponements due to BK, etc.This is the case in larger metro markets where many properties could go to sale but few do so.There are often better ways to acquire properties then auctions.

Mortgage payment of $870 PITI with 20% down at a 7.25% investor rate.

So I trusted Rob and the realtor Charissa Napoles.

If this is financing for a stabilized property rate carries more importance but rate combined with origination fees, pre-payment penalty and term in which you intend on keeping the loan in place are all considerations which together should help in deciding the best financing option.

Well, those are my thoughts, and above all, I trust God to guide as I continue in this lifelong journey 

I have a couple of short term first trust deeds ready to mature and need to re-deploy this capital.

Winning their trust and saying that you're licensed and follow a code of ethics, unlike investors and others that may want to buy your home directly (they don't know the terms wholesalers).