Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?

I do have reserves to cover contingencies.Let's just say, I'm satisfied with those numbers.Had I had to use a bank, I would have had to put down 20% for $33,000, plus closing and my payment on the remaining would be $1400 PITI including HOA. 

Challenges?

But southeast and midwest cities (not including Chicago or Miami or most of Florida) are your best bet I agree BRRRR are more challenging than prior to Q2 2022, but I do not agree with your premise as to what market is best. 

.✅ Renting Challenges: It depends on the market demand.

With inflation driving up day-to-day expenses, saving enough to buy your first home is more of a challenge.

@Holly Thorsen see above for potential challenges tapping your equity in the rental.You only need 5% down for a regular mortgage, 3% down for an FHA mortgage - so why don't you have the funds?

BTW, I am not disputing you, just playing devil's advocate and wanting someone to challenge my thinking. 

If you have this debt and need money, you may not be preparing yourself for the challenges of being a landlord.

Challenges?