The loan is based on the ability of the building to generate enough net operating income to cover the loan payment plus 25%.That being said, the lender wants to be sure the buyer / borrower has enough experience to properly run the building.

For my first real estate investment I have access to the funds that would allow me to put 20% down on 2 or 3 $200,000ish Condos.The Condo’s are in good condition and would not need any rehab.Is it smart, stupid, wise, unwise if I purchased the Condos with a 20% down, and rented them out at a proper rental rate (which would be a few hundred dollars higher than the mortgage)???

@Ben Joseph the proper policy is you need is a Non Owner Occupied Rental Dwelling policy, commonly know as a Landlord policy.You are correct in a Rental Dwelling policy will usually have Liability as part of the policy.

It’s to properly manage my property and ensure that my tenants are not hurting property values from home owners in the neighborhood.When listed, I had over 150 people contact me to rent it in less than 4 days.

I would need to fund the project fairly quickly and estimates are around 4-6 weeks for the project duration and will likely be paying in 4 25% installments.For those with experience, could you provide some pros and cons with what you've seen. 

Just always make sure to vet properly, that mean getting references, viewing pictures of recently completed pictures that pertain to your strategy.

In my area, we can file an eviction based on lease ending and tenant not leaving IF they were given proper notice and didn't leave.

If you are not cash flowing at least a few hundred a month per unit, you may have not properly allocated for the associated risks.It is likely a bad time to be a renter on fixed income. 

Best cap rate we could find in Denver proper.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊