That will give you positive cash flow and a reserve that could be easily needed when doing REI/ or be the money to furnish the house, deciding to live there.The difference in putting 25% or 3.5% would help you to accelerate the rebuilt of reserve, and more important will reduce leverage.

It’s so hard to back track and reduce your expenses later on.

I’ve done a little additional research and learned that FHA has a program to reduce the principal owed on a mortgage.

I want my investment dollars to work and return as much cash flow as possible while providing long-term equity upside, so to accomplish this I look for commercial value-add deals which provide me the maximum tax incentives, write-offs, depreciation, and least amount of hands-on time/energy/headaches.

I could use the money to reduce the principal of the house significantly Or maybe get another rental closer in Sacramento.On the other hand, the thought of keeping the condo (Because it's in the Bay Area!)

The tenant who wanted to fix the tile in the bathrm (SO GLAD I didnt fall for that thanks for the advice) asked me to split his reduced rent (36% discount) for January.

The tenant who wanted to fix the tile in the bathrm (SO GLAD I didnt fall for that thanks for the advice) asked me to split his reduced rent (36% discount) for January.

If the owner and bank approve of what he is doing, that greatly reduces the likelihood of any problems. 

There is enough uncertainty as it is in this business so you want to minimize variable expenses, so that most of your expenses are fixed.It is always easier to bring in an additional dollar of income than it is to reduce a dollar of expenses, so when improving NOI look at the income side first. 

Have contractors at the ready to get work done swiftly upon closing and reduce lag time to get renters into a unit.