Secondly even with the shortage at the time the amount of money they take out each month leaves an excess of over $1600 in escrow at years end after my taxes and insurance are paid so there was no reason for doing what they did.When I brought that to their attention they told me "Don't worry you get an overage check back" when I told them I didn't want the check I wanted the months payment the allocated to escrow(putting me two months back" taken out of escrow and put back to my payments they told me it wasn't possible with no explanation.

They still haven't learned about business cycles, market analysis of gentrified markets, lack insight as to economic alternatives, competition, the understanding of highest and best use of the allocation of assets and scores of other issues, What influence is there from government, what if the laws change giving owners greater rights with respect to homestead exemption, financing tax relief or how the aging of our society effects the tax base over time?

This seems plausible, given commissions, seller-paid closing costs, your own closing costs, staging costs, insurance, utilities, taxes, and gulp... before even allocating overhead from your business operation?

The issue right now is that with rates the way they are, its extremely hard to find anything that really cash flows comfortable, whereas a couple years ago, DSCR was never really a factor because everything cash flowed.Loan products for under $100k are definitely available, a lot of lenders will go down to $75k loan amounts and potentially even lower by allocated loan amount if bundled in a portfolio (3+ loans in one blanket loan)

What portfolio allocation are you aiming for? 

@Aziza Sackett The forum you're looking at was for last year :-)I was actually at the meeting Francis mentioned...it was this last Sunday.It was a bit of a let down in regards to the amount of time allocated to networking.The topic the speaker spoke about was great (Notes...in general), but it took too long.I'm not looking to start one of these, just way too busy workin', but I'd be happy to come to one if you put it together Aziza.New investor here and looking to meet others :-)Make it happen.

Luckily I didn't have to go too far, my parents see (some) of the advantages in owning RE, they already own 2 townhouses in MD (outside of DC), that they bought in a cash purchases (that's why I say they only see only some of the advantages in REI).So after talking to them they were willing to allocate a one time $100K amount to help me with this purchase and structure some of it as a gift and some of it as a low interest loan. 

@Daniel Kern  I would keep the owner finance deal for the 2 years, if the $1035 is allocated as $1,000 principal and $35 interest. 

You should allocate 10% of rent to property management.Looks like a terrible deal for cash flow once your numbers are correct and you account for other expenses you haven't considered.

I wouldn't expect that without decent funds to allocate towards remodeling a fixer-upper, but there are 2% properties in this market if you purchase wisely.