It doesn't need much, everything should be done within a couple weeks.

This one went under contract within a couple days.

There are only a few select scenarios where it might be ok to have negative cash flow for the first couple years.

Recently married couple, looking to buy a vacation home down the Jersey Shore that we would also offset the cost by renting out in the summer.  

This depends very much on personal preference.

Do other investors have a preference for this strategy?

There has been only one instance when a call came in at 1am to report a problem - a problem that was resolved with a couple of phone calls and a relatively inexpensive repair bill. 

Just don't know if I should be trying to get a couple hundred to start on something of 20k.  

These loans often have more lenient qualification requirements compared to traditional mortgages.Opportunity for Renovation: Many HUD properties are sold in "as-is" condition, providing buyers with the opportunity to renovate and customize the property to their preferences.

If you want to refinance in the next couple years buying points doesn't make sense.