I'll even go one further and say that some of my most successful and profitable have been "0.75% deals" ... so to me the 2% rule is less than worthless as it will tend to get you into low quality properties in low quality neighborhoods where you have low quality tenants resulting in low quality, highly volatile, and very management intensive cash flow along with zero appreciaiton (actually, negative appreciation after factoring in inflation) in both prices and rents.

If I refinance to a 30 year at 4% interest rate, then I could lower the PITI for my current house to ~$1,600/month, which would bring me to basically break-even currently, and then expected to start cash flowing a few years down with rental rate inflation. 

Too much money down and inflated interest rates put these hard working responsible folks in a situation where getting into a nice place to live is only going to happen via renting. 

For unit #2, let them know that due to inflation/taxes/etc., rent is going up to match market rate for the area.  

Also there is a potential for the increase in the interest rates and inflation. 

I know the values of properties throughout Miami are inflated (due to foreign investors buying up everything, even at minimal CAP rates).  

This obviously will eliminate certain strategies from consideration.If we eventually build a portfolio of several medium to large multi-family properties my wife will assist with the management.The multi-family market seems inflated at the moment so we're willing to be patient if needed.  

On its own the Market decided to raise that rate last year and the Fed is behind on their desires to combat supposed Inflation by raising their rate.

They are trying to make a sale and will not hesitate to give inflated numbers or slightly more aggressive figures to make the returns look better to potential buyers.I would also check to see what your break even occupancy would be so you know how much of a cushion you have until you start paying the mortgage from your own pocket.

Now that doesnt mean I think every property will go up in value, nor would I buy something that was cash flow negative...but we should not ignore the simple economic forces of inflation, and supply and demand.