Properties in flood zones are harder and more expensive to insure, which lowers their perceived value and makes them more difficult to sell.

Option 1.

In my experience tenants on the lower end of rent tend to cause more damage than higher price tenants.

I may specialize in VA loans, but I also offer a range a conventional, FHA, USDA and commercial lending options. 

Can I find 15% down payment options do you think? 

My agent is saying that we are unable to split the contract that way (or reduce the purchase price), so I'm trying to figure out options.

It’s definitely smart to evaluate the tax and cost implications of your funding options.

There are a few options.1.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

The problem with vacancy is it assumes all products are the same, our 2 bedroom which is designed much better than our 3 bedroom and more thoroughly remodeled has lower vacancy.