Hi Chandana, This looks okay, I would say you could definitely get a better rate with 30% down on a DSCR loan.

We are each willing to put down as much as $50k for a downpayment.We are also open to considering other markets as well, but Florida is a place we'd like to live in. 

20% down, conventional financing 30 year.

Can you save more or get it so you are at 20% down and therefore don't have to pay PMI?

You can go to their profile page and scroll down to the reference section to see folks who have actually worked with them like these guys have. 

If you do have the reserves or don't need them, I would look at moving it to a business CD or possibly re-investing into another property if it gives you enough for the next down payment.

Also, a VA loan is a straight loan where you can use no money down which is a great advantage as a veteran versus a 203k loan which is a rehab loan which requires a 203k facilitator and contractor and the contractor gets paid in 4 draws that have to be approved first.

We felt this added value to our property, so would have done it for free, but we did not turn down the small payment.Yes, you will probably want a lawyer to help to ensure this action does not create an issue later. 

@David Orr Thanks for the recommendations and also heads-up on need for material participation.

If you're looking to take down a ~$35k property in PHX to hold and sell later, your best bet would likely be to drive those areas and contact the owners (or their brokers) that are selling.