Anyone can come up with a pair of competing theories for why one might  be better than the other, which theory is true depends on when you are asking, I can't predict what the future might bring, but I'm not really super loyal to any particular mortgage distribution channel.... a lot of old time mortgage brokers became bankers after the crash (banks got bailed out, brokers didn't, broker market share dropped to like 0.1%), and remain bankers in spite of the market switch, just because they are old and comfortable and don't like change. 

And I know people are winning here in spite of the cost of real estate.

My response would have been much more detailed and complicated if I had assumed you used financing for your acquisition, and/or you had a net tax loss in spite of a positive cash flow.   

I was also worrying if they will destroy the property as they vacate it in spite.

In spite of the low return, I am very very sure that this property is a great return in the long run and massive development potential either for myself or to sell to someone else (Up to 20 units can be built on the land. 

If he's selling it to you at 50% of as-is value, then even I might consider taking that deal in spite of the negative cash flow. 

For some reason, it has decided that it wants to get into my backyard in spite of the fact that there is only grass, and not, say a vegetable garden... 

ThanksJulius Hi Julius,In spite of talking big, most folks actually got started with a plain old vanilla SFR minimal down payment loan for a first-time homebuyer. 

In the famous words of Gary Keller, we often succeed in spite of everything we do, not because of it. 

And I know that nevertheless, in spite of all this, do it you must.