The initial plan was to slowly rent out the spare rooms and renovate until a refinance/moving out and onto the next property made financial sense. 

https://www.slc.gov/planning/f...Forgot to include this in my initial response

Please do your OWN due diligence, and be wary of any company with the initials NW

My initial idea was 10-20% down with 7% interest rate for 10 or 15 years after doing research. 1 person suggested a balloon at the end and another person advised against it. 

This ensures the property is secured, heat or A/C is adjusted, all water is off, and they do an initial inspection to see what they are dealing with.

@Ashni Modilet's be very clear.you likely will NOT cash flow in the first year, or the first few years, unless you (1) buy something in PRISTINE condition, and (2) you put a substantial amount down.and think about it - the more you put down, the longer it takes to recoup that initial outlay before you actually cash flow.contrast that with a savings account. 

You are talking about well over $1 million in startup costs, not including furnishing and initial holding costs.

I would assume the tenant will have to be evicted(worst case) and factor that into my initial offer. 

The engineering company did miscalculate the Base Flood Elevation (BFE) which required my subfloor to be 12" above the BFE -- which in their initial calculations was below.  

Or give up some of the initial cash flows for a better property with more long term growth.Solid economy, with the largest commercial airport in the world (FedEx) and the 4th largest railhead in the US.