This post was mostly for residential lending...but many of the same concepts will work.  

FHA has its own inspections so to win at FHA (unless you are doing 203k which is not advisable right now and for a new investor) you need a property that will pass the test.Your net income will be low to negative with FHA and PMI as well, which can be ok in NY/NJ with appreciation, but it seems like you are thinking more units, more income, but it also means more problems for a first-time landlord.

Zero cash flow translates to negative cash flow in the short term because you have to maintain it.  

Also, since they are offering to correct the breach before the contract has been terminated would bring the contract back into compliance I think and negate any claim of damage.

I mean what novel concept.

If not, to give an inch they would have to have no other negatives.

Im always surprised at the negative comments when someone talks about the real estate cycle, especially when history tells us it is somewhat predictable.Can someone predict the exact inflection point?

This is an interesting concept! 

@Dan Hertler if you’re cash flow negative then how are you hitting your ROI targets?

What if there is negative migration?