It's a math problem more than a qualification problem, but you may want to cap your loan amount to get a better rate (and cash flow) vs maxing out and having a little more cash, but really bad cash flow.

Seems to be a shortage of positive cash flow properties available on the local MLS here in central Ohio.

In the basement I hung streams of toilet paper....and when the room is still, no heat flowing - I notice the toilet paper swaying a little bit.

Real estate generates a return through cash flow + appreciation.It appears that cash flow is negativeAppreciation appears to be 0% over 2-3 years based on zillowThe question is what you beleive the future will hold for cash-flow and appreciation.Cash-flow will likely continue to be negativeThe question is what do you think about the appreciation for the bay area.If the property continues to stay at $850,000, it will likely not be a good decision to hold on to the property.If you think the property can appreciate to $900,000, $950,000 over a few years, then it can potentially be a good reason to hold. 

I think of Joe Asamoah with the Section 8 strategy deployed in Washington DC and keeping tenants for many years (even decades), but maximum reimbursement appears to be $3,740 for 4 bedrooms and market rate family tenants will likely turnover every year or two as they would likely be looking to own in the area.I think rent by the room (students or university professionals) would be the best way to cash flow the property while paying off the mortgage.

With the hope of higher rents and slightly lower rates for a refinance before the cash flow gets too negative.

Here's a deal analyzer template that I use.Even then, I recommend making sure whatever property you buy can also cash-flow as a long-term rental in case things don't work out.

Guarantor is definitely the safest bet but I would also take into consideration their credit/background checks.

The market seems somewhat saturated with vacation rentals, however I have heard that people are still seeing substantial cash flow from properties there (and it seems that most properties I've looked at on VRBO are pretty much booked up!).

for 1050/month all bills paid. they claim this cash flows 3600/month (4200-600). the math on that is they say electric is 90 unit, trash and water is 50 each for all 4 so theres your 600 and say they can provide receipts on all this. it's located  a handful of miles, about 6-8, outside the nearest small town with a wal mart etc.one thing is it seems better apts, in town with 600-800 ft, go for more like 1k no bills paid. even adjusting for the all bills paid part, i feel like 1050 is aggressive on these. otoh near me some crappy tiny apt with mold and everything go for 750, and these are much nicer than that. i think 700-800 would be an absolute floor on what they could rent for.i guess i just have no idea for example, insurance?