If you don't have the cash to do this, get a financial calculator and figure out what payment it would take to get you to a 80% LTV within say 24 months or 36 months.

What would be my best bet as to start up money or money up front ?

Some investors use it to filter prospects, some private lenders use it as a threshold for their terms, etc but other than that, it's just an indicator.When I analyse a project, I always work backward from the minimum profit I want to make....next is ARV.....from there, I calculate all other expenses (including closing costs on the purchase and sale) and work down to the bottom line.I use a private lender that doesn't know or care about the 70% rule so I don't use the rule.

Add that to your $488 taxes, insurance and utilities, and you have $885.5 as total expenses.This makes your NOI as $439.5 (that's income before debt service).If you get a 30-yr loan at 5% interest, your debt service is $316.19 per month, leaving you a cashflow of $123.31.It's not spectacular but if you calculate the Cash on cash return, that's a very good 24%.

While your imediate area may be tought to cash flow, I bet within an hours drive there are neighbrhoods that will make great rentals.

Your best bet will be smaller local banks.

What would be my best bet.

BUT, FHA will underwrite about 75% of the rental income of the non-owner-occupied units on a 4plex when they are calculating your Debt to Income.

its calculated from the agent entry of status change in the MLS system.

I know it may seem crazy, but I'm just wondering if the wallpaper doesn't come down easily (which I bet it won't because it appears to have been there a while) how difficult it will be to fix the walls.