Just don't compromise your safety.

My first deal was a 4-unit up I bought with FHA 3.5% in Santa Clarita.I lived for free (as opposed to paying rent) + enjoyed cash flow + built equity so it definitely didn't compromise my cash reserves, so I had cash left over for my next deal.Good luck!

There's a chance I could extend the balloon payment out to 15-20 years, but it doesn't change the fact that the rate will inevitably be higher in 5 years at a rate that could compromise cash flow. 

I also own an office building and had to make a few compromises recently to keep one of the long term tenants.

Do not compromise on this or you will suffer painful consequences.

So I speak from experience.Pay close attention the foundation as that can be a major cost if compromised especially if it is in an area where sink holes or ground water has been a problem. 

This can lead to damaged roof sheathing from mold and wet or compromised insulation that will need to be replaced.

The roof is greatly compromised and we have seen people fall through badly dry rotted areas.

In my personal opinion, you can compromise slightly on the CoC with confirmed factors that would allow immediate increases (rental upside) and/or major upside in value.For example, I closed on a deal in September 2021 at about 3% CoC.

This is where you absolutely do not want to cut corners or compromise.