If you are looking for cash flow typically multiple unit properties are going to be your best bet but might require a little more work up front and there are not a lot of them around the area to scoop up right now.

@Vinessa EiseleInteresting negotiating skills.I have lenders who will allow seconds on DSCR loans, but the "seller financed" part is limited to 15%, whereas the borrower must bring at least 10% of their own funds to the deal. 

The lender may not otherwise restrict the homeowner’s use of the loan proceeds for any lawful purpose.Default and ForeclosureIf the borrower defaults on the loan, a home equity lender’s recourse is limited as compared to most other mortgages and loans.

I do have some money in savings that I could use for a down payment, however if I use only that money, I will be quite limited in how much I can spend. 

Maybe this is a bad idea but this is the only option I have available or see within my limited knowledge so far.

Limited risk for them, limited risk for us.  

I understand that Section 280A limits the expenses to income if the rental is part of the primary residence.

To reduce electrical calls, we educate our tenants at move in on flipping a tripped breaker and limiting electrical use.

I do agree that mechanical upgrades are a good idea if necessary, those are almost always a safe bet for ROI and resale-ability.

Are you betting on appreciation in your investment strategy?