Double check with your Lender to make sure you can do it.Your reserves are a little lower than I prefer.  

So if you have reliable personal income, cash flow and can lower rent and break even, keep an eye on your property and your tenants, and you keep personal borrowing under control you should be able to do fine with rentals in an area with jobs.

Fannie/Freddie loans will carry a fixed rate, they will have a lower rate, and they will help you qualify for other loans later.Now, if a bank is telling you they can't refinance because of "seasoning", is that because you purchased it with cash?

That's buyer's monthly cost to own the property with owner financing which is lower than their monthly rent. .  

All I can find is:- Possibly lower mortgage rates (FHA?)

Bridge loans are more expensive than a conventional agency or bank loan but you can typically get higher leverage than you would with a bank loan because they typically have lower debt service coverage guidelines. 

I want to find a lender that would entertain a lower down payment on a property that should cash flow very well but I want to be out of pocket as minimal as possible. 

And, you're tying up $75k in liquidity.My personal recommendation would be to look at lower cost properties, if you're looking to get into long-term hold/rentals. 

Lowers my competition.Justin:Take a look at this Spreadsheet:What it seems like Gallinelli is saying is that you should create 2 different scenarios, one pessimistic (selling at a 9.5% Cap Rate) and one that's optimistic (selling at 8.5% Cap Rate).If I run the pessimistic numbers, the Selling price at the 9.5% Cap Rate in Year 5 would be Year 5 NOI / 9.5% = $152,605 / 9.5% = you would sell the building at $1.606 Million.

I know underwriting will basically default to using the lower of the two - net income and distributions.