It seems as a safe and good plan in long term... but what would happen if the economy cracks again (I dont see the economy such an stable thing nowadays) a % of people loses their jobs, the vacancy rate rises, and the values of the property goes down and you still have a big portion of your mortgage to pay?

I reviewed multiple scenarios in an effort to move the deal forward and not lose my 2k.

On one side I'd say that my deal is easier because I only have 2 tenants to deal with and a lot fewer refrigerators, A/C units, sinks, toilets, etc but on the other hand...if one of my tenants doesn't pay or I have a vacancy then I lose 1/2 my rental income.I am very interested in purchasing a du/tri/quadplex or small apartment, do you mind me asking where you found the deal?  

If you buy for cash flow, if rents do not drop drastically, you can lose your equity but still be making money each month (although no one wants to lose $20K in equity to make $100 a month).5) Evaluate the situation and determine what is best for you.

A way for you to learn the business and now lose the opportunity at hand.Regards,Frank

Hey BP,I have a confession to make, I'am a Realtor that might have a hero complex, I have the compulsive need to try to help everybody and at times I find myself in the deep end.... losing sanity.

And specifically short on the excessive $21000 EMD due tomorrow.

You will be losing all the equity you may or may not build.The FHA 203k loan program is a bit different and does not limit your gains.  

You can easily lose capital gain rates, plus there is the issue of refinancing.

To replace the roof I will be required to pay a $2000 deductible or I could repair the damaged area; which could cause me lose my roof coverage after 1 year, if not replace.