That being said, I'm compulsive and manage just 1 extra mortgage payment in principle per year.

One analyzer adds the CC to the total purchase price of the building, then subtracts the down payment (25%) from that amount and then calculates the monthly payment. 

There is one potential buyer but he wants to sell his condo to make a down payment for our property.  

Rental Monthly Income $4,800.00 (8 rooms x 600) ------- 4800 x 12 = $57,600.00 Monthly Gross Operation Expenses Mortgage950.00 Taxes191.00 Insurance 166.00 Maintenance Housekeeping 216.00 Landscaping 60.00 Repairs 10% - 480.00 Operational Electrical 350.00 Water 150.00 Cable/Internet 150.00 Reserves 10% - 480.00 Total - $3,193.00 Annual Gross Operation Expenses Mortgage11,400.00 Taxes2,292.00 Insurance 1,992.00 Maintenance Housekeeping 2592.00 Landscaping 720.00 Repairs 10% - 5,760.00 Operational Electrical 4,200.00 Water 1,800.00 Cable/Internet 1,800.00 Reserves 10% - 5,760.00 Total - $38,316.00 57,600.00-38,316.00______________NOI $19,284.00 19284.00/46,000.00 (down payment) = 41% Cash on Cash Return (CCR)

If there is a valid reason such as a family emergency or something of that nature I try not to be a heartless land lord but the truth is late payments are almost always a result of laziness and lack of priorities.  

Their current payment with mortgage insurance is about $700.

You will hardly ever encounter any serious tenant payment issues, evictions, damages, etc.Let me know if you'd like to see a deal analyzer which breaks down the numbers and I'll send it to you.

Using the Mortgage Payment Calculator from BP, putting 20% down at a 4% interest rate gives a PITI payment of $3,917.74 / month.  

I met with my mortgage broker today and at $130,000 monthly payments would be $781.  

From listening to a fair amount of episodes from the BP Podcast and reading a couple of books, I am thinking my best option to get started would be by using an FHA Loan because of the low down payment.