But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.

The safe way to go about this is to put down anywhere from 15 to 25% down and have your loan officer write this an investment property.  

You want it to be clean, function, and safe at minimum, anything above that you want to ensure you'll get a decent return on your investment.

We managed to pay off the loan by 2005.We bought our second rental in 2005, after taking out another equity loan on our primary, and again - - paid our "normal" mortgage payment, applied the rental from rental house number one towards the equity loan, made the normal equity loan payment and applied the monthly rent from rental number two towards the equity loan.In 2006, we bought yet another rental - using an equity loan on rental property two.That loan we threw the monthly rental money of the unit at.In 2008, we had paid off the note on rental number two and began throwing more money at the loan for rental three.In 2009, we bought rental number four and paid off the loan on rental number three later that year.In August of 2011, I retired from my job as a computer network engineer/database administrator at the age of 59 1/2, and began to withdraw money from my IRA & 401, using the losses on the rentals to offset the taxes on the IRA & 401 distributions.I had to use trial and error to guess how much to withdraw & be on the safe side as far as taxes go. $40K per year is roughly the "sweet spot" for that if you have 4 rental properties in the state of Ohio.

Section 8 isn't usually known as the safe route, but the route for better than average returns if you purchase right.  

I think a rental property with a mortgage should be safe. 

But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.Sanitary facilities and a safe method of sewage disposal.

Please help me out with some advice.Purchase price: 177,000Projected Rent Income: 1350Mortgage: 819.71Taxes: 158.50Insurance: 76.70Current overage on Loan (Bank applied): 27.65Ppty Mgt: 135Vacancy: 67.50Repairs: 67.50CapEx: 135 (Probably a little high as the house was built in '09 but better on the safe side)Total Income: 1350Operating Expenses: 509.35P&I: 978.21Total Expenses: 1487.56Cash Flow: -137.56That is not what one would call a good deal. 

Not feeling safe I moved out and let it go without paying taxes, electricity or the water bill.

Stay safe and healthy, wealthy and wise, best wishes :)