Most investors that obtain a mortgage are basically breaking even yearly between income and expenses, mostly due to the high HOA payments.

I have access to a rather large sum of money in my 401(k), I have a conventional mortgage available to me up to $150k (at least that is what my broker told me on a 5 minute phone call), and I have contacted a hard money lender for more info (still waiting to hear back).  

Your first purchase will probably involve a 20-25% down payment if you use a traditional residential mortgage.  

The property has a non assumable mortgage in place.  

The mortgage has a small balance of $22,000 with a $232 of monthly payments which includes principal, property tax, and fire/water insurance.

For the majority of them selling with a lease purchase won't work becuase they either need the mortgage out of their name immediately to qualify for a new house or they need the cash for a down payment on a new house.

This means that you two work out a deal where you pay your monthly mortgage directly to the owner.

I'm looking to connect with an investor-friendly lender or mortgage broker in Michigan.

But as long as the mortgage and other expenses including vacancy threshold cost is paid in full by the tenants and a few hundred dollars a month cash flow, my spouse and I can seriously pay off our expensive degrees in no time with just our income.

So if income for a property is 2000/month, they count 1500 minus mortgage, tax and insurance.