Hard money lenders don't like doing down payments.Owner financing wants at least 25% down.With any debt to income ratio I've tested it doesn't work for conventional financing.Even conventional financing requires AT LEAST 3% (which I don't have because: SoCal, but I'm also not looking to live in it (my rent is 1/3 of the comps).What have you done/what would you do?

Would you buy a car without test driving it?

I am definitely intrigued with the idea of "running stress tests and scenario tests". 

50% LTV is reasonable$23 income - $8 expenses = $15 NOI - $8 mortgages = $7 cash flow (if I understand correctly)DSC (debt service coverage) = 1.875 times ($15 / $8) = pretty safeStress test these numbers for a down economySet aside some cash reservesSleep well at night

Unfortunately, the real estate licensing training/test does not prepare one to be a realtor. 

Thank you for the encouragment, you are right about testing out of the first one at least.

I agree with @Jonathan Bombaci I would say that letters tend to do better, but it is worth testing your market to see what works in your area. 

@Grayson GistThere are a couple of reasons:Occupancy fraud is the number one type of fraud in the mortgage industryMost people buy a 4 unit and then move up to a single family; they don't continue to buy 4 unit propertiesFHA expressly says in its guidelines that "FHA will not insure a mortgage if it is determined that the transaction was designed to use FHA mortgage insurance as a vehicle for obtaining investment properties, even if the property to be insured will be the only one owned using FHA mortgage insurance." https://www.hud.gov/sites/documents/4155-1_4_SECB.PDF ... so if you're trying to use FHA, you could be running into that guidelineOver 2 units, FHA requires the property to pass a self sufficiency test as well, meaning 75% of the market rents must cover the mortgage amount and they also have to apply a market vacancy rate to the mix.Lots of reasons to just live where you're living now and get a portfolio loan that has none of the above guidelines.Stephanie

You might also look at a storage conversion to the open space to make the existing building a self storage to test the water. 

Put them to the test.