Here are key points to consider:Loan Eligibility: You can buy a multi-family property with a low down payment if you occupy one unit.

There should be a minimum 12 months for the 2nd/final payment with clawback parameters. 5) Seller Noncompete: make sure it includes that the seller cannot conduct ANY real estate related business with the owners you are buying for X years.

In Cincinnati, 60k will be more than enough to for a down payment and closing costs, and have funds for any "surprise repairs" that will inevitably come.

In the 1st scenario you need to come up with say $60K in down payment and your monthly payments would be $1600/month. 

I got a HELOC on my primary for the down payment.

We are trying to get creative with financing as our family cannot really float the monthly payment we were quoted for 6+ months while we renovate the property and prepare to open the business.

The numbers work, as it cash flows nicely given the section 8 rental standard payments for the zip code of the property. 

It sounds great, but if you're using conventional financing, your new DTI = (Old debts of $430 + plus new payments of $800) / ($1000 old income + $1000 new rent) = $1230 / $2000 = 61.5%, You just went from qualifying to not qualifying.

I've heard 3-4 unit conventional/primary residence loans are more difficult to achieve with the new low 5% down payment option...

I would like to move forward with building our RE portfolio, but not sure if we should sell and put the profit into 1031 for a new property or start looking into other properties with limited cash on hand for down payment (and start saving up in the meantime).