I did my research and requote what would benefit both me and the investor, below is the Finalized CORRECT format of the proposal:Listed price on the property: 459,900MAXIMUM amout of money down on the property: $380,000Method of Payment: CASH OFFER from Investor.

For example, the buyer, if they find problems with the property or stop making payments, can blow up the seller's credit.

It can take 2-3 months before payments get approved. 

I wouldn't worry about the $1000 payment.

If you sell, you could access the equity you’ve built and put it toward other investments or save for a future down payment.

I’m a fan of harvesting the equity to buy more and more cash flowing properties with zero out of pocket cash for down payments.

The main thing that pops out at me every month is that less than half of my payment goes to paying the principle down, over half goes to the interest, taxes, and insurance, ect. 

Know that every long term lender will require a survey and if something comes up on it when you are trying to sell or refi, you could get stuck in hard money without an easy or quick way to get out.Is there a pre-payment penalty?

But, the self-sufficiency test for FHA loans can be really difficult in SF, meaning that the market rent from units you will not occupy must be sufficient to pay for the mortgage payment. 

What kind of account or vehicle would you suggest to start saving down payment money for my first rental property?