I was a contractor in my previous life, so I am quite familiar with how things are supposed to be done and when it is not being done properly.

So I have no idea if that agent has properly prepped his clients for getting through the home inspection, or prepared them for the buying process. 

To be done properly cost segregation must be done by a qualified construction engineer trained in the tax code as it pertains to depreciation.

I am wondering whether it is better to save up cash  (will take longer to do) to use toward a down payment or use equity in my primary residence for the down payment, then take out a 2nd mortgage to finance the balance on my investment property.

What I don't understand is if the homeowner is about to foreclosure - why don't they sell their home, pay off the remaining balance, and pull out their equity?

Anything can make money if purchased at the right price and structured properly.

You have to make sure the person or company over the association is not siphoning money and is also being a good steward of the funds balancing the budget and tracking repair items.Special assessments could kill your cash flow model.

Hopefully @Dave Foster will chime in if I’m wrong but my understanding is you’ll be taxed on cash you keep or any lower balance mortgage you obtain.

Your payment would go to them, they would split off the loan payment and send it to the bank and the balance could go to the owner.You can also record your lease on public record which would likely  put you in a chain of notifications if the seller ever tried to sell or in the event of a foreclosure.

We currently have 2 rental properties, one a 4 plex with a 240k balance at 4.5% interest and a duplex with a 155k balance at 5% interest.