Second year distributions rise to 5.27%, third year 7.27%, according to the projections.Those projections may be at risk, for many reasons: the recent huge increase in interest rates -- increasing the cost of loans and decreasing valuations, insurance costs have skyrocketed, real estate taxes are up, labor and material costs for repairs & renovations have increased, etc.On the plus side, the majority of the ODC funds were designed to be high value add projects with plans to increase operating efficiencies, add tenants and raise rents.  

The cost associated with insurance for not having 20% is peanuts compared to what you potentially can do leveraging your down payment. 

I think the best model, and one I'm currently working on, would be more akin to how insurance works. 

E&O insurance, MLS fees, electronic lockbox fees, association dues, contract fees, every software agents use.Many of these fees could be close to doubling by the end of 2026.

Maybe you can call your insurance agent and they could possibly whip up a letter or something.

Out of my 32 properties, I’ve seen insurance rates drop by up to 40% on renewals, and property tax increases are finally slowing down compared to the crazy jumps we saw over the last five years.

However, you would not be able to get title insurance

You want this to be your backup plan if things take longer than anticipated, you do not want to dip into personal credit cards so i would use a heloc to help with down payment but try to keep a nice available balance on a heloc as your insurance policy. 

He is no longer responsible for insurance, maintenance, or dealing with the realities of renters. 

If you can rent it for enough to cover the principal, interest, taxes and insurance and still put money in your pocket, plus cash flow on the property you're purchasing, that would be ideal.