This will affect things like required down payment, rates, and even which lending institutions would be willing to finance. i encourage you to look up warrantability for financing just so that you don't have surprisses when your 20% down buyer cannot finance that way.

Because instead of collecting one rent check per month, you’re collecting multiple payments from different tenants.

Hey @Dalton Foote - I highly suggest  using a renovation loan and house hacking a multi-family if that is possible with your current life circumstances.The 203k and homestyle renovation loans are just amazing products and drastically help you reduce your risk, in my opinion, because you are able to leverage the cost of the entire renovation with such a low down payment loan.We work with a lot of clients who use these products in Chicago, and no matter what, in the long term, they gain great equity.If you aren't able to house hack - the process is essentially the same, but just with more money down with hard money or conventional construction loan.

When you said you had some money saved up, I was thinking that meant you would have enough for a down payment on an FHA loan.

My question is, since we may not need to borrow anything to finance this, will the mortgage payment be affected? 

We would all love to have that note that has 5 years of perfect payments, 800+ credit score and a 20-25% down payment. 

BRRRR method is also a great way to go - good luck!  

Are there any options with lower down payments?

Purchase price: $275,000 Cash invested: $294,000 Sale price: $355,000 Seller was behind on pay HOA payments and in risk for losing the property.

How many mortgage lenders have you spoken with to get qualified and discuss allowable down payment options?