Then you will have a track record, and the annuity can fund the down payment for the next venture.  

You're on the right track Floris.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

You are right 5% is very low, that's why we use this strategy (minimal cash out of pocket with the best available rate), you are also right that we have to pay PMI, but the PMI is minimal on a conventional loan if you have great credit, it's only about 0.2% of the loan amount per year, so I pay $72 per month on this one.

Try local banks and Credit Unions, they'll offer the best terms for you. 

Most PMCs use PM software that tracks income & expenses and provides a monthly Owner Statement and some type of Annual Statement for income taxes.

to help track leads, notes  re conversations with sellers, generate reminders every NNN (30 days) that you need to re connect a batch of leads.   

@Kent KettellWe have been using loan to cost funding our deals the past three years, with community and credit unions, and the refinancing once stable to agency.we are able to get 80% of the rehab built into the loan, and it has allowed us to come up with less.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Things like income documentation, background checks, credit reports, etc mean a lot more to me.