It could be a very long time before you obtain possession of that property and getting it could cost you thousand$ in legal fees, damages, etc.

With fees and points and so on, their money cost me 16%, and it was a total pain to refinance to a 5% conventional mortgage.If you are going to do a deal which involves buying a house for $50k less than market price, then paying Eastside $10k to expedite the closing is totally worth it.Eastside funding are good people, and they provide excellent service. 

Net income is what gets taxed and that is different than cashflow.If you are managing your business correctly, usually cashflow is higher than net income because depreciation expense lowers your net income and depreciation is a non-cash expense.

Those landlords sometimes feels the pain managing property outside the state.  

The other catch is you have to either document prior experience managing rental units or use a property management company if you need the rental income to qualify. 

And the branch manager said he doesn't know of any big banks that does that as well as he's worked with a few of them.

In our experience, the #1 mistake landlords make when selecting a Property Management Company (PMC) is ASSUMING instead of CONFIRMING.

I manage some STR/MTR in Oceanside, it depends where it is.

Expect to put 30-40% down on the property and then consult a self-directed IRA specialist to make sure you understand all the nuances of how to manage the property and pay for repairs. 

In other words, the adjusted rental income (75% of the gross rents) must be sufficient to cover the total mortgage payment of the property.Example of the FHA Self-Sufficiency Test Calculation:Gross Rental Income: Assume the appraiser estimates the total gross rental income from all units is $4,000 per month.Adjust Rental Income for Vacancy: Multiply the gross rental income by 75% to account for vacancies and maintenance costs.$4,000 x 0.75 = $3,000Monthly Mortgage Payment: Assume the total monthly mortgage payment (PITI + MIP) is $2,800.Result:Since the adjusted rental income ($3,000) is greater than the monthly mortgage payment ($2,800), the property passes the FHA self-sufficiency test.Importance of the Test:The self-sufficiency test is crucial for borrowers looking to finance a 3- or 4-unit property with an FHA loan.