I would recommend that you start with buying a primary residence using a low down payment loan, like a 5% down conventional loan, live in it for a year or two and then keep it as a rental when you go and buy your next primary residence using another 5% down conventional loan.

I tried to rent one of these buildings for a developer. it was brand new construction, really well done.One after another is was voucher applicants who had criminal records, you had no idea who was actually going to be living there, some were high out of their mind and/or drunk, average credit score was 500, consistent late payments, eviction records, etc.By some miracle I rented one place out to 2 young girls looking to save some money.

Quote from @Theresa Harris: For late payments, how late are they? 

After 6 months of non-payment, we were able to perform an eviction for this tenant.

This felt like they were turning me into their money-making machine.If they’re charging $10K upfront, plus $200 per month, and taking 50% of the profits, why aren’t they putting in 50% of the work or covering 50% of the down payment?

Whether you’re dealing with non-payment of rent or other lease violations, this resource explains what landlords need to know to remain compliant and protect their investment. 

In those cases where a tenant suffered a minor setback and is back on track, if they are scheduled for a hearing before they're evicted they will often pay before that or when they see the notice on the door, but only if you file relatively soon.It really is good screening and filing quickly and consistently that minimize nasty non-payment issues in just about any kind of market. 

Just make sure to run the numbers with the HELOC payment and the rent, so that you are not underwater every month.

The amount of cash flow on a home will of course be contingent on the down payment.

Preforeclosure owner finance wrap, paid off the default payments and taxes with cash and assumed the owners loan.