@Amanda McAvena I could see myself using the less expensive version of this in out of stare/area markets.

While no one can predict the future with certainty, if rates are expected to rise significantly in the coming months, it might be wise to lock in the rate now to secure a lower rate. 

I agree with others that state you should just try and negotiate perhaps a little lower price.

Here are the details at a high level:Purchase price: 174,000Closing costs: 2,000Down payment: 20%Rental income: 1525Monthly expenses: 487 (insurance + tax)Maintenance: 128 (1% of purchase price)10% vacancy: 150Self-managingI am not sure what interest rate to use to get the monthly mortgage amount.

As to liens, I would suggest for you to go to the Fulton county courthouse with several properties in mind and go to the archives in the lower level and look up those properties in the computer.

The area between Los Feliz and Silverlake is very trendy and should only become more expensive over time.

On the other hand, a poor location can lead to lower property values, decreased rental income, and a longer return on investment.

There's a couple of things that make this more attractive than the other option sugggested of forming a new LLC to own the property.First is the expense and reporting involved in another LLC entity.Second though and more important in my book is that by having your LLC own a TIC interest and having your partners LLC own a TIC interest you keep the utmost flexibility available to you as you move forward with that property to eventual sale and possible 1031 exchange.  

The Fannie guideline change doesn't eliminate the self sufficiency test as FHA still requires that, it just lowers the Fannie down payment for 3-4 units from 25% to 5% and since Fannie has never had a self sufficiency test you avoid that issue. 

IF you lease the unit now, you are likely to get a lower quality tenant & quality of tenant is everything4.