Quote from @Torianne Baley: Hi George,Do you mind sharing the lender you found who accepts the 500 credit score and will loan $300k There are lenders out there but the risk is very high so your rate will be 13-15% plus the loan to value will most likely need to be less than 60% (or even 50%).

I could go on and on, but suffice to say the devil is in the detail, not in the high level split.

And if you haven’t performed a cost seg study before and intend on improving your property, I highly recommend doing so beforehand.ARE THERE ADDITIONAL BENEFITS TO A COST SEGREGATION STUDY?

BiggerPockets also has a calculator to analyze deals, and I highly recommend you start this as soon as possible, even if you are not ready to buy.

The only thing that I can think of is that the rent price could possibly be too high. 

The California method is you buy High and you sell HIGHER.  

I don't like it I have to be honest - I think part of the reason you're cashflowing is the low interest rate and relatively high downpayment.

High-quality photos and detailed property descriptions are key. 

Current prediction is rates will land in the high 4s in 2 to 3 years.

Your second property is either a highly leveraged property to round out. your 1031.