They countered with giving me a credit for $2,500 at closing.

Thank you Ayodeji I certainly do read and listen to as much as I can on all topics related to investing, real estate, negotiations, self improvement... and continue to learn every day!

We didn't know what we were getting into at the time, and now find ourselves having to complete a Management Improvement and Operating (MIO) Plan..

It is my understanding that if you go 5 units or more you will need a Comercial loan and Comercial loans look at the property value and the revenue it generates and not so much credit score or DTI...so look for properties that are 5 units or more.Or do BRRR (Buy, rent, rehab, refinance) using a private loan (mom and dad or invester) or hard money loan.I hope this helps a bit.Good luck!

I approached a larger branch bank chain, would i have better luck at a small credit union or a mom and pop bank?

@Brent Kiger I've been using rentigo for a while now and am really happy - @Cornelius Dudley is right - the tenants pay a service fee for using credit card or ACH and I'm assuming that's where they make their money from. 

We have great credit scores and high income.

Occupancy has improved a lot since then. 5% actual with 5% economic might be more realistic for 2016. incremental rent growth after the property is stable is 2%I think we can safely assume a 3% growth rate going forward due to high demand and low supply (depends on your area). 

I am hesitant to do any fixing up because I have a very demanding full time job and absolutely no experience with home improvements or even home buying.

Checked with Local credit unions and banks in local Erie,PA. they have their own regulations on out of state properties2.