If you plan to refinance further out - say at 6-months after affecting renovations to the property - then it is probably more advantageous to place a closed-term variable mortgage (3yr or 5y whichever is more favourable) and then pay the penalty (3-months interest) to break the financing an re-finance ... a few minutes with a pencil will let you know precisely where than line falls.In your instance you could talk to your lender about working-up both "open" and "closed variable" financing.  

In my case, it does, because they live in these neighborhoods and know precisely how much rehab to do.

NO... these (serial) sheisters clearly knew/ know PRECISELY what they are doing... as does any veteran "slumlord," turned LOer!

I don't want to penalize my tenants, particularly because we will be living together open air and I will know precisely who damages what and in what way, so I'm taking it to the forums.Should the security deposit be:- 1 month's rent?

@Gustavo Delgado- thanks ...if you dont  know precisely all the details on the HOA increase - make sure you dig  deep to understand all the reasons. 

If the rate of return clears your expectations (not merely your hurdle), then you have a deal worth pursuing and know precisely what you can pay for the business.All a CAP rate tells you (if it is calculated correctly and consistently) is what everyone else has been paying for cash flow ... not what you should pay.

I work in Java support development (software) in the Birmingham area.My wife and I are just getting into real estate investing and we are seeking our first investment property, a multi-family rental property in Jefferson, Walker, or Blount county Alabama.I'm interesting in finding mentors, private lenders, and general real estate investing contacts in the area, because I know precisely nothing on the subject.

If you wholesale you know precisely how much work is to find that one guy who's willing to sign a purchase option contract.

I don't know precisely what needs to be renovated.

What I don't like is the renter density and vacancy amount:Also the prices are insane:In my opinion, you are late to consider that strip unless you buy for speculative purposes (i.e. buy low sell high fast, flip, fix etc).Also Miami Dade is generally a high crime area, with good parts yes, but you need to know precisely "boots on the ground" what you are doing and where.Look to start with something that will cash flow and you are able to cover the vacancy from you other income IF it comes to that.