If you purchase a quad and live in one unit, you will never be lower than 25% and most likely will be 75-100% most of the time.Using the cash to qualify for loans on the new property means you would probably only need 25-35% down including closing costs.

They will go max $100k or 70% LTV whichever is lower.

My area of uncertainty has to do with the lower quality property in a lower income neighborhood.

But if I can guess here a little...FHA loan will have a significantly lower down payment for a multi-family unit - 3.5% down.  

Rent increases are based on market comps and if the rent currently is more than the market comp it can be lower.

Kyle Winston are you able to/would you want to partner with anyone who may be able to give you a larger portion of a down payment to lower the payments and find a way to split the equity given that you will be paying a portion of the rent?

It also lowers my risk and gives me more options.

As long as the maintenance was taken care of within a reasonable time frame and complied with landlord laws then you should never lower the rent or take partial payments.

If I can get a 40 year, I would take that.There are two factors here with regard to my cost and income:1 - Down Payment - The lower the better. 

Too much debt and self esteem issues, anxiety etc.