You can collect a down payment in many cases.2.

You should make sure that the rental revenue meets all of your costs, including the mortgage payment, property taxes, insurance, maintenance, and vacancy allowance, since monthly rental prices might range from $1,000 to $1,600.Property Appreciation: Take into account the market's expected and past rates of property appreciation.

You can be mortgaged to 85% with Freddie Mac if its a single family house with the cash out refi although if you go that high there will be private mortgage insurance to pay for , either monthly or in a lump sum payment at closing. 

Based on what you're describing, I think your going-in criteria is definitely something that is strong *however* your goals may not match what current market reality is.When you say $3200/month payment - do you mean $3200/month before or after accounting for potential future rental income from your tenants in the other units? 

If you go to the clerk's office you can read the actual foreclosure file and at least see when the last payment was made from the initial complaint.....then you can guess at accumulated interest, late fees, any taxes or force placed insurance, attorney fees, court costs, etc.

. $800 per 2 bed /1 bath unit. quick mortgage calculator puts zero% down monthly payment at $3500, plus then offset with $2400 puts you on the hook for $1100. 

Why would someone be willing to take payments on a home based on your promise to pay?

If you pay on time on the first day of every month all the monthly payments go to principal and you don't pay any interests until June 2023.

I have funds totaling around 20k for a down payment (100k home), however for my planned strategy I’d like to target homes at max 200k which should require a 40k down payment.

The average buyer has no idea how to conduct a transaction, especially if they move from market to market / state to state.If we move away from a commission payment system, it puts a serious crimp on the agent / client relationship.