My goal is to achieve at least 15% cash on cash rate with 25% down and 30 year conventional loan.

You're going to have a hard time getting a conventional loan for an investment property with only 5% down.

Not a good option for you.I think you might approach friends and family who are looking for long term returns at better rates than they are getting in their CD's.You can amortize over 20-30 years, but set it up with a balloon in 5, so that by then you might be able to get conventional commercial financing.

I asked about running a credit check and he basically said it would be a waste of time because I was essentially guaranteed they'd have a bad score, as otherwise they'd be financing conventionally.

The particular area where this property is has a lot of rental inventory, and this deal isn't strong enough to compete with all the other avaiable rental properties for sale in the area.

I have 5 other offers to choose from, VA, FHA, Conventional, etc.

Some of the core markets now are trading at crazy prices and really low caps.I have also seen where a house used to be worth 160k and at it's lowest point the value with foreclosures was worth 75k.Because pre-foreclosure and REO inventory has dropped that same house is trading at 92k within a span of 6 months.I have seen new home subdivisions start popping up as builders feel more confident taking a risk to jump back into the market to sell houses.I wouldn't really call it appreciation as much as a market correction and recapture as the bad assets are worked through they system.

Whether I go this route or conventional financing @ 5% down, I've confirmed that the properties that we are looking to acquire are well within our means as far as PITI and cash flow on the condo; this has also been looked over and confirmed by a mortgage broker whos begun the search for a lender that will get us the best deal possible.

Understanding contingent liabilities, securities, assignment of assets, uniform commercial code requirements and perfecting a security interest in other assets such as inventories, plant equipment, accounts receivable, rents and leases, options and forward contracts.

Inventory is down and competition is fierce for REOs.