Options like conventional loans (3% down), FHA loans (3.5% down), and even no-down-payment options like VA or USDA loans could work for you, depending on your eligibility.

Your question has been debated between BP tax experts both privately and publicly, for example here: https://www.biggerpockets.com/forums/51/topics/819991-expens...And we ended up where we started: no consensus and no clarity.There have also been court decisions that support my interpretation, even though I personally find these court decisions debatable.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions.

It’s also worth connecting with a property manager and contractor early, even if you don’t need them right away.

@Roman Balmakov If you are planning on holding the property long term and have enough reserves to cover even worst case scenarios it could still be worth it. 

There are often weekends or holidays that finding even a basic motel for the night in some areas is nearly impossible (especially if you have pets!) 

its most unfortunate that you had to go through this deception and theft from someone who is considered a professional in this business. we definitely appreciate you putting the warning out about this character. as hard as it is to find a reliable experienced contractor nowadays its even harder to find one that's not a crook and a liar and that's truly pathetic.   

Assume break even cash flow while rented which includes a generous $600/mo repair fund. 

However, even though we found it a bit odd that the husband didn’t have all the details right away, we decided to move forward with the application process.

What are some of the best areas or even zip codes that would be good to buy a rehab property?