It's very hard to win with low money down in Northern NJ.

You need comparable sales BEFORE you spend $175 or the appraisal will come low to your expectations.

He does 65% leverage maybe 70% but doesn't matter how low purchase price is. 

They moved out in 2020 when interest rates were super low.

@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment. 

Quote from @Bonnie Low: The "best market" is less about the market per se and more about the deal you're able to find in my opinion.

But that is far from the point of this post.) first they’ll confirm your $1,000/mo “market rent” isn’t a) BS or b) still too low.

However, we typically use the FHA-203k loan because it involves a renovation, which I highly recommend if you are looking to really boost your equity and have the cost of the renovation wrapped into your loan with a VERY LOW AMOUNT OUT OF POCKET.I like the FHA loan, but honestly, the Fannie May Home Style is an even better product at this point because you just have to bring a bit more cash to the table 5% vs. 3.5% (w/ FHA), but you have a bit more flexibility.  

I guess I was looking at this as a low-cost of entry type of property that could provide some cashflow.

We are a growing market with low unemployment but you will see a lot of the rental income going to covering expenses and setting aside reserves.