I'm going to need a lot of work in the house if I purchase it and will be having city inspectors come in to check the electrical re-wiring that is needed.

But the area definitely seems to need some improvement.The area i'm looking in is between Biscayne and Miami Blvd.  

@Anique AkhtarThey should go with the 6.25% as costs will be lower in the long term but likely will have to need more reserves day 1. 

@Dharmesh R.I would get pre approved so that you know that you qualify for the loan.You'll need to gather quite a bit of documentation but it's best to get these items up front.W2 for past 2 years1040's for past 2 years ( all schedules )30 days worth of paystubs2 months of bank statements6 months of reserves ( this can be shown in many ways )Valid ID like a DL or passportTerms of withdrawal, if you're showing money in a 401k, stocks or bonds.Current mortgage statement and home owners insurance policy (Just the first page of the home owners policy).You're really going to need all these items except maybe the terms of withdrawal if you have enough cash in savings or checking accounts.Before you actually pay for an appraisal I would gather data on current sales in the neighborhood of the home.  

You're going to need some estimates via a contractor or two, which you also may need to pay for.

It'll be the exception rather the norm to cashflow in the bay area with only 20% down...3) If we're talking buy and hold you're going to need 20-25% down.... if it was a primary residence you can do the 3.5, but most the time primary residence isn't investing (exception being househacking).

You are going to need to appeal it."

The returns are there, but you are going to need to be ready to pay a higher price.

There are dozens of threads with a similar tone.

We are looking to grow this into many buildings and units but are going to need joint venture partners in the future.