We are now seeing loan products where this requirement is relaxed.Also, with investment property, be prepared to show reserves.  

They were confirm that what was being pitched was troublesome for the IRS.

I will be utilizing an FHA loan for my first multifamily and I will need just about $15k more in capital to have a good down payment and 3 months of reserves.

@Jessica Baez So based on the figures provided we have the following:Loan - 110,000 @ 4%, 30 years Taxes - $700 annualInsurance - $300 annualPMI - $100 (estimate)Monthly payment - $708HOA - $100In addition, you should plan for other expenses not covered by HOA, turnover, vacancies, and reserves (let's just say $150 a month)Total monthly costs - $958Total monthly income - $1100 (placeholder)Potential monthly cash flow - $152You need to do more research on market rent.

I have excellent credit a good job and enough cash reserves for 12 months.Also I've talked to some investors who say they love getting a 5/1 arm and refinancing in the fifth year.

I keep most of my liquid reserves in the stock market.

It has been continued confirmation that while the numbers can make sense and I can break the 2% rule, there would have to be a LOT of work to continue to meet and exceed the levels of expectations on any property that I like owning.

I have found that most non-recourse lenders that lend in Ohio only lend a minimum of $50k, require 40% down and 15% of the purchase price in cash reserves (if anybody knows of a better lender please let me know). 

Just make sure you've got the infrastructure and reserves in place to take on another property!

As far as cash on hand for closing costs and reserves, nobody at the lending company I'm using can tell me what exactly I'll need until much closer.