To be considered, you are in imminent danger of default, you have no equity and you have no reserves to service the debt.

Good point @Ben Leybovich  I'm not a big shot investor, don't own hundreds of units (yet) and after 7 years of investing, getting a realtor license and dealing with tenants; I just now feel I know enough to take the next step and get a small multi-family (under 75 doors)Call me conservative, cautious, scared or insane but reading posts in this (wonderful) community of young, inexperienced wanna investors aiming at apartment buildings as first investments with 16K total cash reserves or questions like "how to start with no money at all?"

Subtract from that, vacancy reserves, maintenance reserves and insurance...you're upside-down by about $300/mo, that's assuming the monthly payment is fully loaded and includes tax.

Confirm with your tax guy. 

Hi @Amjad FarooqI thought that I would chime in here and confirm what has finally been agreed upon. 

If you have done your homework and received a couple quotes from contractors to confirm the 20k in repairs quote, and then it would be nice if you can reach out to a realtor to confirm the ARV (maybe you can list the house with them if that ends up being your exit strategy).. 

Don't forget the reserve funds needed for each as well.

Hi Tracey,I took the 3 day seminar last month and it is a good program if you can afford the 20K AND have money in reserve to bank roll your RE deals.

But reserve requirements add up quickly and can ultimately shrink the amount of cash you have to invest.

Keep in mind as well that there are always reserve requirements in addition to down payments.