About 20% use DSCR (usually 20-25% down) and the rest are cash or hard money or something else.For $325k purchase:1) As a broker I would negotiate down as its been on the market a while and its especially now in holidays)2) I would also negotiate seller paid closing cost credits, most loans allow 3% which should cover most or all of that.3) Assuming you paid $325k but got closing costs covered I would anticipate a minimum of $32,500 down and maximum $65,000 down depending on lending product chosen.4) Remember you still must furnish and I use $20/ft as a safe estimate to fully outfit an STR property.Best of luck!

I think it's safe to assume that all investors' capital is gone here.

However, it’s important to ensure the area is safe. in those areas I would recommend checking local crime statistics on SpotCrime. you can use this link for an example,to get detailed information: https://spotcrime.com/map?

Repairs would generally be for costs <$2,500 using the de minimis safe harbor. 

Even if someone gives you the lay of the land, you would still want to go there to see for yourself, just as you would definitely have someone come check out Dorchester to see what they consider safe and not safe.

Down payment on FHA is 3.5% so you’re not wrong there and safe to assume another 2-4% for closing costs BUT you can negotiate seller assist to cover bulk of the fees if not all.

If you work a day job in addition to your plans to pursue real estate in this way, then focusing in 1 city/MSA will drastically reduce your time spent focused outside your job, allowing you to keep your income high, your job safe, and your problems simpler.

I was hopping to find a very knowledgeable attorney who can tell me exactly exactly what to do or not and be on the safe side of the law.

So in this situation, where you have a relation with the borrower/home owner it is likely safe to assume if you get too greedy and ask for a heavy discount there will be no deal.

There’s a silver lining, though—if the cost of the improvement is under $2,500, you might be able to expense it under the IRS’s safe harbor rule.