It's interesting because of the low start up capital and potential for higher returns.

@Bonnie Low I was not including debt as I want to know how a cash buyer would look at the deal.

@Sang Kim- thanks for clarifying you are trying to get a commercial loan ...this is a  completely different product than a home loan ...You still should be able to  locate and obtain a good commercial loan  without  having to pay any fees upfront  ( other than possibly paying for the appraisal after the  loan has been  approved )

We recently relocated to Phoenix last summer and I'm starting to look for recommendations for local credit unions here in Phoenix which are trustworthy, low rates, personal touch, easy/simple to work with, etc. 

Most rental properties in Milwaukee are old and run down, our product stands out. 

Quote from @Andrew Steffens: I am curious what products exist?

Usually of the home requires major repairs it may require a HML "hard money loan" then you refinance in 6 months on the new ARV.DSCR is also not a great avenue for low loan amounts because all loans under $125K will take a rate hit and the minimums are usually $125k after down payment with some going down to $100K Min.

Believe it or not there are still a few "old-school" counties but those are few and far between and the volume is low.

Same experiences as above....great product with very helpful customer service and they always seem to be adding new features.

Weigh the long-term benefits of the low mortgage rate you have versus selling and getting $500k from a sale exempt from capital gains tax.