Breaking Even & Potential Cash Flow•Your goal of breaking even in Year 1 is very achievable, especially with a 5% down payment and PMI removal via renovations.

I would say keeping their crews busy is a must when there is always another investor who needs a good reliable contractor.

Your payments are known. 

One thing to be aware of is the FHA multifamily self-sufficiency calculation which determines if a property can generate enough rental income to cover its mortgage payments.

Low down payments but I can still use them as leverage.

You want to buy real estate with no savings, which even if you can scrape together a 10-20% down payment, means you will have no cushion to fall back on when the inevitable surprise expense happens. 

Seller was behind on pay HOA payments and in risk for losing the property.

Is there a reliable source to get this information from other than agents? 

If the prospects look financially shaky or sketchy, I ask for the name of a co-signer - and collect payment for a background check on them.Verbally, I also ask when they are interested in taking occupancy, and I tell them the application will be made part of the lease agreement - that I can evict them if they've lied in their application.

Full credit/background check:  Look for missed payments, and any theft is always a no go.2.)