And always set aside reserves for the unexpected.always look at location, schools and is there an area that is gentrifying where we could take advantage of better appreciation Inspections are paramount.

Why buy something that is new with active and confirmed contamination underneath it.

Further, I had negotiated 12 months interest reserve; they cut that to 3 months.  

They just let me know I wont be receiving rent and the reserve accounts have been depleted. 

Based on the local market, $15k for renovations seems light—have you had contractors confirm this budget? 

Personally I don’t like being cash flow negative on properties, but I guess if you have an amazing W2 and a good reserve account and the new property is going to cash flow really well then maybe consider it.

This maximum rate is determined by adding 2.50 percentage points to the yield rate on long-term government bonds as published by the Federal Reserve Board or the United States Treasury, or both.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

So call it $60K for the down payment, and another $8,200 for reserves.

@Kevin Collins you are asking for advice and I am taking time out of my day to actually give you a different view point in an attempt to help and assist you but you are upset it doesn't quite conform and confirm your thoughts in the way you expected.