And your credit will be ruined for like 7 years.

@Jemini LeckieRecommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Avoid PMI and then go to a local credit union and get a heloc after closing to gift the money back.Have this as a tool in your tool belt but pursue use of the 3.5% FHA, knowing that you will be at a competitive disadvantage if you are competing with non FHA buyers, then you can call in the favor from your gift person.Just know that if someone gifts you down payment money, your bank will require them to sign a letter stating that it is in fact a gift that doesn’t need to be paid back.

Not reported on credit.

You would want to look for an owner that has a loan through a bank or credit union or one that has no mortgage. 

If you're using traditional financing on your primary residence, they're going to do another credit check on you just before closing.

Hopefully the deposit covers Jan rent, make sure you give them an itemized list of the money owed to you for any damages or unpaid rent. 

Property damage, excessive wear and tear, but paying, that PM has an incentive to look the other way, don't they. 

If your interest payment is $8,125Your stocks have to make a dividiend of about $11,000 of which you would prolly pay 15% to 25% in federal / state taxes / NIIT.Assuming you will make a 10%-11% return is not guaranteed.You will also feel good about having a paid off property(relief).Furthermore, your credit score may go up with a paid off property.Best of luck!

And even if the tenants chooses to stay in your property for 2yrs, the damage they may cause will eat away all of your cash flow and leave you potentially upside down.