Lenders like to see that you have skin in the game.

Why else would the lenders want the investor to have "skin in the game"?

Problem is, a conventional loan takes too long to use in a foreclosure sale and there can be issues with getting property inspections and appraisals.And, your HML loan needs to be long enough to qualify your refi as a refi and not under purchase money underwriting guidelines, so, saying conventional can mean secondary market which will use the lower of the sale price or appraised value within 1 year, some banks may look at 6 months, that means you'll need skin in the game to meet loan to value requirements.

All in all a bustling area with a diverse and healthy economy.The real estate market is likewise healthy and currently enjoying a strong up trend in prices.

Make sure the rents more than cover the costs so you have a healthy NOI ( net operating income) .

Looks like healthy advice for the "average" first time home buyer. 

Nothing like a good bit of healthy competition.  

There are lots of hard money lenders in our area, They will charge 10-15% interest and 2-6 points, but they will require you to have at least 20% skin in the game.

@Michael Linquist  If you are desperate for a course, for heavens sake, please please please choose the $300 one so you can put an extra $12,200 towards your business.Otherwise, I would go with the healthy suggestion of networking with others in your area at an REIA meeting.  

You can have very little skin in the game and make some money without a lot of risk.