Flood Insurance rates from the National Flood Insurance program (NFIP), the traditional flood coverage from FEMA, have been rising and will probably continue to rise.   

If so, wholesaling or even a light flip might be a good idea.

@Vinh Nguyen Traditionally, it actually refers to the cost of purchase plus any repairs.

We would also qualify from an income standpoint for traditional financing for both properties, but cash for downpayment is the issue as 25% down is required for 4-unit building. 

However, the seller knowing my specialty, countered asking me for a proposal with more upside for the seller or to do a rental arbitrage.My initial offer was a 5% upfront cash payment, 15 year repayment plan at 4% interest and attempt to refinance within 7 years to repay the seller in full and secure more traditional financing.  

toilet" in the bathroom located at apt 2fl, 2nd storyproperly repair with similar material the broken or defective caulking around bathtub in the bathroom located at apt 2fl, 2nd storyproperly repair with similar material the broken or defective caulking at base of bathtub in the bathroom located at apt 2fl, 2nd storyreplace with new the broken or defective saddle in the bathroom located at apt 2fl, 2nd storyproperly repair the broken or defective light switch at west wall in the private hallway located at apt 2fl, 1st storyproperly secure the loose base molding at south wall in the kitchen located at apt 2fl, 2nd storyreplace with new the missing base-molding at west wall in the kitchen located at apt 2fl, 2nd storyAny thoughts / feedbacks, or if you had similar a situation is greatly appreciated.Thank you.

toilet" in the bathroom located at apt 2fl, 2nd storyproperly repair with similar material the broken or defective caulking around bathtub in the bathroom located at apt 2fl, 2nd storyproperly repair with similar material the broken or defective caulking at base of bathtub in the bathroom located at apt 2fl, 2nd storyreplace with new the broken or defective saddle in the bathroom located at apt 2fl, 2nd storyproperly repair the broken or defective light switch at west wall in the private hallway located at apt 2fl, 1st storyproperly secure the loose base molding at south wall in the kitchen located at apt 2fl, 2nd storyreplace with new the missing base-molding at west wall in the kitchen located at apt 2fl, 2nd storyAny thoughts / feedbacks, or if you had similar a situation is greatly appreciated.Thank you.

I would make a few changes: reduce vacancy to 5-7.5%, include Property Management costs of 10% (even if you're self managing), increase insurance to $1,400+ (I know you mentioned this was actual from the seller, but it looks very light). 

Here is what they explained that some of these cash offer are doing and I'm needing clarification if this is accurate and if it is possible:- You can get a loan from your investment brokerage for up to 50% of your investments (not sure if this was IRA or traditional account).

It will be hard to secure a traditional loan without enough income to keep your DTI ratio in line with the requisite thresholds.