I've seen brokers/HMLs hire car salesman as originators, not really someone with a finance background.

I needed 5% down because the seller was a finance company and they wanted to unload the fixer upper fast.

However you must remember that both of these are "Rules of Thumb" They are great for per-screening a deal but you should use actual numbers as much as you can for a final analysis of a deal.

If you're getting other investors involved I suggest you see an attorney, a finance type, not a RE type.

Look around you, 80% of your classmates are tenants.You probably signed your first lease, Wrote your first security deposit check.Fought with your landlord, or most likely got yelled at by them.But I digress If you are on school take a finance, accounting, marketing.

When you find a prospective property, you will want to go over the profit and loss statement with a fine tooth comb and compare it with typical investment property figures.

DO NOT give keys until the following occur: you get the deposit and first months rent in money order/ certified check, lease signed, and a confirmation that the utilities have been transferred to tenants name and a finally signed move-in checklist.

When I'm the buyer, I want the property vacant at least a couple days before close of escrow so I can do a final walk-thru.

If you stick to your guns, you the association may assess a fine against you and you will have to take them to court to have the fine removed - how much will the legal action cost?

Be sure you do the resale portion -- that will give you a final cash flow, which is the expected cash proceeds from the sale of the property (after paying off the mortgage and costs of sale).