With these rates, I will likely be negative cash flow or break even if I am LUCKY on a single family.  

Usually in the form of special assessments or ever rising dues/property taxes.

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.

By contrast, secondary markets and deals with a restrained mark-to-market opportunity can see pricing in the 5% to 6% band, as investors in these markets are less willing to apply negative leverage beyond the first couple of years.

I recommend listening to BP podcast episode 304 to  overcome fear and crush any negativity.

You can be pretty liberal in your estimates and usually get back much more then you actually spend on mileage. 

Usually residential properties up to 4 units are valued by residential appraisers.  5+ units is considered commercial.

You don't need an attorney, down here we usually use title companies to transact the deal.

You basically need to purchase in a new-build neighborhood of "free-standing" townhomes (usually not next to the lake) or get into a non-warrantable condo to get near the lake.

Prepayment penalties- usually 1-5 year terms.