Acquiring an income earning property with high potential for appreciation for less than $20k out of pocket?  

What is your current income? 

But for a loan in a good city to approved i think it has to have income to cover the mortgage and the expenses. 

Both properties fall into Class B- category and has no HOA and no rental restrictions.Here are the details for each property:Property 1:3 Bed, 2 Bath (1020 sq ft)Purchase Price: $250,000Moderate rehab needed (Kitchen, floor, bathroom sink vanity, light & fan fixtures, interior paint)Rehab Cost: $30,000After Repair Value (ARV): $295,000Down Payment: 20% (Out of Pocket: $50,000 + $30,000 (rehab) = $80,000)Projected Rental Income Post-renovation: $2100/monthProperty 2:2 Bed, 2.5 Bath (1168 sq ft)Purchase Price: $230,000Moderate rehab needed (Kitchen, floor, bathroom sink vanity, light & fan fixtures, interior paint)Rehab Cost: $30,000After Repair Value (ARV): $295,000Down Payment: 20% (Out of Pocket: $46,000 + $30,000 (rehab) = $76,000)Projected Rental Income Post-renovation: $1900/monthThe location is moderate, with amenities like shops, restaurants, a mall, and a baseball stadium within a 5-mile radius.Considering buying both as they are in the same building, the total cost and income overview would be:Total Price for Both Properties: $478,000Down Payment & Closing: $96,000 + $10,000 = $106,000Total Renovations: $60,000Total Price (Including Renovations): $478,000 + $60,000 = $538,000Total Out of Pocket: $166,000Projected Gross Rent Monthly: $4000The rate of interest for the mortgage is 7.5%.I am currently evaluating: A) The break-even point for two townhomes considering a cash investment of close to 32%.

@Jane KimWow, everyone is really encouraging aggressive plays here.Assuming this is your first purchase, I would wait until you close, move in, and start getting rental income from the hack before doing anything else...

My goal is to continue to grow my wholesale business and start my own flips in the near future allowing me to grow my active income.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Additionally, I operate in neighborhoods with lower median incomes than 44119 (44306 and 44310) and routinely get significantly more in rent than section 8 will pay. 

You can enjoy both Tampa and Pinellas counties right across the bridge, lots of beaches, water activities, all kinds of events happening, pro teams like the Rays and Bucks and no state income tax.Happy to help talk through what your buy box would look like

@Chris Seveney I have an IT consultancy as my main income for the last four years.