Traditional Lending for Investment:DSCR (Debt Service Coverage Ratio) loans do generally carry a slightly higher interest rate compared to traditional investment loans, typically 1-2% more.

-Since it's an Owner-carry, do I still need to set up escrow for prepaids/homeowners ins/property taxes?

With seller carry backs you can get the seller to take a 2nd mortgage and carry most if not the entire down payment.

Let’s start with some basics of realistic expenses offset versus unrealistic gold rush paradigms in a high cost, high tax, low occupancy state:You’re not getting 20% CoC.

If your income exceeds $150,000, your ability to deduct passive losses from rental properties is limited, and any disallowed losses carry forward to future years under the passive activity loss rules.Yes, the deductions can accumulate and roll over year after year.

Second, if one of the units has a vacancy then the other unit or two can help carry the bills.

My CPA put that as loss in my tax return and carried it over.Next year they sold the property for a gain of 32K.

You can get money from family and friends, you can get the seller to provide financing, often called "Seller Financing" or a "Seller Carry" or you can get a lender to lend you close to all of the money needed (I see loans at and above 90% of purchase cost + 100% of improvements). 

Just wanted to thank everyone in this fantastic community - what a wealth of knowledge you all carry!

I grew up here and when I came to the city as a travel nurse this summer, the month to month furnished rentals were outrageously expensive, $4000-$5000 a month easily to be in a nice building anywhere in River North, Gold Coast, Lincoln Park, West Loop etc.