You can get a max of 75% of the appraised value or the purchase price (+ closing cost) which ever is lower.

I use gross potential (all units rented at their current rate) and then subtract either market vacancy or property vacancy, which ever is higher.

The Condo: (Owned 6 months, rented for 5 months)Purchased November 10th, 2015 - $122,000Appraised when purchase (before $8,500 repairs) = $172,500Mortgage + HOA + Insurance + Taxes = $856.151 year signed lease Rental Income = $1,500.00Net Monthly Cash = $643.85My Wife and I:I have a credit score of 804 and she has 795We will have 20% for which ever property we choose.If I choose all the income we have (Gross Monthly) and take the Monthly Debt percentage, we both combined we have a "Debt-To-Income" of 28%.

Whichever you can commit to doing consistently, for a long period of time, will be the best one for you. 

Get off the fence and it will double your speed at whichever strategy fits your goals.

The theories I hear regarding this one is that over time the dollar (or whichever currency you use) is worth less and less.

My plan is to live in one of these properties for now but eventually to sell or rent (whichever makes the most sense based on the market).

Do a google search for "homes for sale Puyallup (or whichever area you prefer)," and sign up for a few different agent's websites and see who calls your first.

Traditional lenders usually fund transactions at 75% Loan-to-Value (LTV) or 75% of the purchase price, whichever is lower.For example, if the building appraises for $60k, but you are only buying it for $55k, then they will loan you 75% of your purchase price since it is the lower amount ($41,250).If you are purchasing it for $55k, but the building is only worth $50k, then they will loan your 75% of the appraised value, which is $40k.Will the seller finance the purchase?

Its my understanding, from being told this by several banks and brokers, that the "value" for the first year you purchase it is the price you paid or an appraisal, whichever is lower.