I'd assume you could do better than that, possibly 5% with 20% down without much problem, which would dramatically change the numbers for this deal. 

If the house was a wreck and needed a complete rebuild, one could alter the layout dramatically, hugely improving things. 

For 1 bedroom units this results in a dramatic increase in revenue in most areas. 

This is the time where having many tools in your toolbox will help dramatically.

If you have to move them, this purchase price goes down dramatically. 

Once you own the property, anything you do to increase income will have a dramatic impact on your reducing your out of pocket expense.

After a very dramatic 10+ months with ****** (ex coworker) tenants (BIG MISTAKE LEARNED EARLY), I hired a PM and am now looking at roughly 800 net cash flow per month after ALL expenses (including a 100/mo rainy day fund)....Now that I'm cash flowing I want to start making moves again.

It's an easy (relative to other options) start to real estate investing and it dramatically improves your savings rate while giving you quite a bit of freedom since your living expense is eliminated.