This cash flow does not include equity gain from making the payment which is in effect additional cash flow that can be obtained with a little effort.

If your in a big hurry , see if you can qualify for a FHA loan now and have a family member gift you the 3.5% down payment.

While the deal was 10K at signing, 5K per month, 10K on 1st anniversary the formal payments were 9.5K for ML at signing,  5K per month for lease, 500 at signing for option,10K for option at first anniversary. 

He is open to seller finance, but he didn't want to give me a number for a down payment.

The balance =         ~$49,500 with payments of ~$450 per month (PITI)- Current rent roll = $1325 per month; PM = 130 per month- Current ROI for the Middletown duplex =         [($1325 x 12) - ($450 x 12) - (130 x 12)] / $25,400 = 35% ROI

Commercial loans are generally 20 or 25 years amortization so the minimum payment may be almost as low as a 30 yr conventional mortgage if you factor in mortgage insurance (at least for the first 5 years).

Prompt payment is the reason the owner has property insurance.

No MI payments and your in an appreciating market.

A member said I could use a portfolio conventional loan 3% down payment to buy a first multi and then still have the option to use an FHA 3.5% down payment on a second multi.

It states that I have the right to put the property on the MLS before I even buy the property and I'm able to get out of the deal at any point in time.The seller doesn't have any leans or anything on the title and he's up to date on payments, so that is already checked.That being said, the mortgage is too high for a Subject To deal, because I won't be able to rent it that high in this area.