@Duarte MarquesPossibly but highly not recommendedFor those with no real estate experience or experience in taking on debt, it’s not easyTo do it also with little to no down payment or reserves in most occasions will end in disasterReminds me of when in high school a friend used to let his dog drive his car.

am working with them now and had the first policy (with Spinnaker) cancelled for nonpayment/late payment so we rewrote another policy (with Millenial) and having the same payment problem again but at least they are communicating that cancellation is coming. they want me to pay by credit card over the phone so the payment wont be late and cancelled again. but when i go to mycoverageinfo.com to check on status it shows its been paid.

So you can scale that if you want.FHA is for people with poor credit and very little down payment.

What kind of account or vehicle would you suggest to start saving down payment money for my first rental property?

Know that every long term lender will require a survey and if something comes up on it when you are trying to sell or refi, you could get stuck in hard money without an easy or quick way to get out.Is there a pre-payment penalty?

And how much of a down payment do you have available to invest in the property?

I’m a fan of harvesting the equity to buy more and more cash flowing properties with zero out of pocket cash for down payments.

A $100-$200k down payment would get you a decent multifamily property, possibly with land depending on where you look. 

I wouldn't worry about the $1000 payment.

The maximum fixed-rate period seems to be seven years, and there is generally a balloon payment at 10 or 15 years.