For example, on a $100k property, I take out a loan for 10% and combine it with my cash down payment of 10% to meet the minimum 20% down to avoid having to pay Mortgage Insurance.

I'm thinking if I can get both of the properties I would combine them back into one as they are adjacent and re-zone so I could build a MFR quadplex. does this seem like a good idea on the surface?

My backup plan is to purchase more condos (~200k/each) which gross about 45k/year (net just over half that) and save up until I can afford something bigger.Ideally I want to stay in the same city with the multi and do a combination of long term and short term rentals.Thank you for your time.

2 - I hope you aren't combining your lease with your Option contract....and I hope you're not offering 5 year leases and options to your option/buyer? 

Even with seller financing, you're still looking at a required down payment of 25% as the maximum combine Loan-To-Value (LTV) is 75%.Good luck,Rob

Currently we have 124 units that we manage, we are fully staffed and use a modern property management system using EFT payments.

I plan to put in around $10k to modernize it and bring to comps renting for $1,300 per month, which includes all bills (water, internet, etc. )With the improvements to the area, I can see it being a long buy and hold play. 

I'm looking to begin investing in properties with a friend because with our combined capital we believe we can afford to do so.

Thanks in advance for your combined wisdom. 

I have been meeting with several folks who would like to combine funds and start a real estate investing group.