I have one last mortgage broker work for me right now, but I'm not overl optimistic, since my stated income status is like kryptonite to the lenders.

With enough lipstick (aka optimistic assumptions and complex analysis), anything can be made to look good.

So, today my house is worth less than 185K (optimistically), and is going down about 1% per month.

OK, so I'd apply my more optimistic assumptions with those factors, and use 40% of rent for all expenses.

I am optimistic about the future but caution on my deals for today.

Baer said he is optimistic the boom will return if the government takes the right actions. “There will be layoffs, they will have readjustments in asset prices and maybe they will have more careful accounting practices,†he said.

I think you're overly optimistic about your cash flow, but this still looks like a deal.Rent $5600Expenses $2800 (50% rule)NOI $2800Payment $2062 ($310K, 7%, 30 years)Cash Flow $738Cash flow per unit $184That doesn't consider what other units are selling for in the area, or local conditions.

I just think you have to go into them with eyes wide open.I wish I could be as optimistic as you about the housing market.

We are optimistic about a restart, but have serious constraints.This is where any advice I can obtain here comes in.

This has bad idea written all over it.First, lets look at this as a pure rental and assume the market rent of $1100 and a purchase price of $100,000.Rent: $1100Expenses: $550NOI: $550Payment: $665 (P&I only, $100K, 7%, 30 years)Cash flow: -$165Even with the more optimistic assumptions I tend to make, this is, at best, barely break even.You're probably going to need to put some cash down to get an investor loan. 20% is pretty much minimum.