My recommendation is you talk to a lender on how much cash you will need. 

Also you need to ( to get the best deals ) be cash.  

You ALWAYS submit your short sale offer to the bank as Cash AS IS but you can always in most all cities come to closing with someone else’s cash.

I tell them I will be negative cash flow at the current rent and tell them what market rent is.

For cash flow, Cleveland and Dayton are excellent choices, offering cash flow around 10-18%.

Purchase price: $182,250 Cash invested: $73,000- Residential area that is close to University of Rochester- Spent $20K in renovation of the aged unit and increased the rent from $750 to $1,450. 

Purchase price: $24,000 Cash invested: $100,000 Beautiful remodel currently on the market in Augusta GA, perfect for rental portfolio.

Usually, I buy with cash.

-Calculate your own cash-on-cash-Contingency 14-day inspection

yes 700k loan 20% down = 140k to do the deal with those guys.. dont send them 50k deposit though for gosh sakes.. only money they should charge up front will be apprasial and maybe a few hundred for an app fee if that,  Keep mind as well with hml or pml or ANY loan you dont have 100k equity the majority of that will be eaten up in points  Junk fees and interest depending on how long you hold it..