they are kidding themselves one needs to punch in 50% to 55% of gross cash flow for expenses then deduct your mortgage payments.. anything less than that will not play out over the years.

You could structure the deal as an installment sale or a lease option so the property owner doesn't see a large capital gain tax payment for the sale.And good on you for helping out!

You should have 25% down payment + closing costs, + an oh Sh*t fund on top of that. 

Use some for a down payment on your next home.

The deduction is optimized as values increase and can potentially offset the entire net investment (including down payment) for high wage earners.

However, finding properties that would cash flow with a 20-25% down payment on 400k property has been challenging.

However if you have enough reserves, 6mo or greater then I'd say chance it but a couple of missed payments from the tenants and you have to foot the payments out of your own pocket.I'm all for taking risks but I think you really need to evaluate the age of the major systems so you don't get hit with a bunch of cap ex all at once as well as your reserves. 

DSCR (Debt Service Coverage Ratio) loans generally focus on the property's ability to generate enough rental income to cover the debt payment.

When you say you have$150,000 available, is that for a down payment or the total purchase price of the investment? 

Our rates are 7-12%, with no down payment required.