The cost stated is so low compared to property value.  

For example, I am a little concerned about some aspects of the business cycle recovery and a potential for a double-dip so I lean toward the safest part of capital stack which is debt (or low-debt equity).

Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

This was my first investment property and I used a loan from my 401k for the down payment and also used a local credit union for a 10% down payment on it when I bought it.

Approached the seller asking they pay all closing costs, received enough credits to buy down the interest rate back into the 5-range (current rates were in the 7-range).

Conversely, when property prices are low, rental demand decreases, causing rental rates to remain relatively flat or fall.How can you identify cities that are likely to have significant and sustained appreciation and rent growth?

While the prices of home are low, rent yield is still strong making you feel more confident in achieving those cash flowing goals. 

It's typical to sell 40k programs to people after the free or low money get together.

For anything less than that with a traditional bank or credit union, you'd likely be looking at a portfolio product (the bank/CU will hold your loan and not sell it on the secondary market). 

Because the existing house was too low the developer followed the rough location of the old sewer line and installed a new sewer line to connect to the existing house.