I would say the 80/20 rule definitely applies. 

Questions to vet if they really know REI :Q1- If 199A applies to rentals, and what if it doesn't meet the safe harbor?

Also, if you close near the last day of the month, he was probably getting ready to pay his rent payment, which he could apply to down payment. 

Assuming a 70% LTV and applying 10% vacancy reserve, 10% capex&maintenance reserves, and adding a 10% property management fee, it does not cash flow.

Not sure if this applies to Edmonton as well

The only way I could completely protect myself against unlawful discrimination would be to apply to houses and say there’s no pets then request accommodation before signing the lease.

Are there any situations where PMI is not applied for this type of loan and at what % down payment?

@Bob Okenwa Hey Bob/ Appreciate the note and I have considered a 1031 but have been thinking about using the cash to renovate my current primary and potentially adding an ADU to rent out which I don’t think you’re able to apply the 1031 to?

I believe the property could appraise for 185k (just a guess)Remember, after appraisal we apply for a cash out refinance from the bank at this 185k property appraisal value.

Also when closing and taking deposits from tenant buyers do you guys keep the money in a escrow account just so there’s a paper trail for the lender when the tenant buyer applies for mortgage?