I'm very new to the investor game, so my goal with the first purchase is:A place that my partner and I would want to live in for 1-3+ yearsCap Rate of 3-4% minimumCash flow as close to $100/a door as possibleHave cash leftover to (A) start the slush fund for this property, ~$5-10k and (B) less vital: start building the pot for Property #2 within the next 2 years Note: I am semi risk-averse, not looking to over leverage right out the gateI'm looking for this first purchase to be a base hit, not a home run, as @Brandon Turner says.Property 1:DuplexPurchase Price $275,000Rental Income: $1000/unit Location: North Side of town (Northern Barton Heights), up and coming.

As Scott mentioned, it is vitally important to run your own numbers -- what the seller tells you sometimes qualifies for a Pulitzer Prize in Fiction.I forget how many times BP lets you use the calculator before you have to become a "Pro" member, but even the first time is a valuable education.

All things being equal, FHA allows higher DTI than traditional lenders, as high as 56.9% under some circumstances.FHA borrowers are much less likely to have ready capital.

That deal sounds skinny on the surface - typically you do ARV x .7 minus repairs, and that equals the max you can pay, and builds in a profit for you as well as holding costs.

It will replace with equal or like value up to the limit of the dwelling coverage (Coverage A). 

Then it was listed 'Back on Market' for $58,900.Do you think that the bank would accept an offer equal to the reserve price ($48,000)?

It's great to find a deal but it's equally important to have someone that will actually buy it.Also, in your short-term REI plan (& if it makes sense for you) consider house hacking a multi-family property with a 3.5% down FHA loan.

or Up my offer for the future benefit it'll have of adding a second bathroom and using 4 of the the rooms (1 master/3 smaller equal sized bedrooms) as 4 beds?

However, if I’m buying a property at a below market cap rate, assuming all else is equal similar rent levels, expenses, location, risk, etc, then I would be over paying and not be compensated for the additional risk. 

If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.6.