I am actually closing on another low dollar amount ($27,000) loan next Friday.I am using a small local bank, but they are reselling the fixed rate loans just like everyone else, so I do not see what the difference would be.

They need a lot of work to bring them up to the standard that I am used to (and even to Code...), but no one really does this in these parts of the town.

I did find postlets and am using that.

I am using conventional financing (20% down) What's up with the appraisals with stipulations?

ex: I keep same job, stay in NJ, will FL bank provide a mortgage for me if i am using the house as a rental property?

John the reason I am using the HML is because the property in question was a 7 units but it need to reconvert to a 4 units.

I like to always pay 20% of down payment on the properties I buy or plan on buying so keep in mind that would be variances.Purchase Price: 120kAcquisition Cost: ~29k (20% down + closing) - assuming no other acquisition cost requiredFinanced Amount: ~91kMortgage Interest: 4%, 30 yrsAppreciation Expectations: ~3% YoY - that's big assumption, you would know your area better.Taxes: ~2% - another assumptionMaintenance including hoa: 4% - may be it is on lower side assuming property is newer and expected rent is from higher earners.Monthly Rent: ~1250Vacancy: ~7%Property Management: ~10%Insurance: ~0.5%Based on my calculatios -Your annual gross income at 93% occupancy: 13950Operating costs -PM - 1500repairs: 3000 (I am using way below the 50% rule)maintenance: 3000 (Hoa: 250*12)insurance: 500 appx (can be lower/higher depending on your liability level)janitorial: 150prop taxes: 2400Total operating expense: 10500Net Income: 3261Debt Service: 458Cashflow: 2803 or 9.7%Based on my another calculation, your total cash flow in 30 yrs would be appx 84k, inflation adjusted in future as of today's value at 52k.With the appreciation expectation and inflation mentioned above, based on my calculation the total profit after 30 yrs in today's value would be appx 200k.Not sure if you wanted all this from a newbie with tons of assumptions..but oh well, there you have it at least from my perspective.

I am estimating $33,000 annually.For reserves, I am using $250 per unit per year, or about $3,250 per year.

I am using IIP Management and so far have been happy with them. 

One method I am using is looking in the financial newspaper where they publish the names and addresses of "foreclosures".