Getting prequalified should always be the first step though, you can just ask the brokers for your max budget based on your income/debt, and down payment size (20% down if you’re going conventional 30 yr fixed, plus ask them what they want to see in reserves after close.

They are lumping in my sister's personal debt (that was what the loan officer suggested) so we will only get $30k in cash to work with. 

But I've rented to people that only made 2x the rent because they were elderly, had zero debt and good financial responsibilities, excellent Landlord references, etc.

I looked at it then he told me it was going to be foreclosed on in 3 days and I didn't want to go through the hassle of redemption and more legal fees. 

Many investor has large asset  and large DEBT.

Those that don't stay ahead of the curve will be left behind.I'd be more concerned about the various factors playing into home ownership trends if your investment vehicle is SFH - such as home ownership among millennials, aging population, consumer and student debt, etc. 

to be some upside that I am missing in my valuations:Purchase price:  495,000Units:                      16Rental Income:      8,400/moDown:                    20%Down:                    100,000Closing:                      6,400Repairs:                    16,000 (assume 1,000 per unit)TOTAL INVEST:     122,400Costs:  Debt:                  2,800.00 (6%)   Taxes:                   690.00  Insurance:            200.00  Sewer:                   800.00  Heat:                  1,200.00  Yard:                       40.00  Garbage:              300.00  Cap Exp(3%)        252.00 (Lower than I normally go)  Repairs (5%)        420.00 (300.00 per yr/unit)  Mngmnt (10%)    840.00  Vacancy(7%)        588.00  Screening              40.00 (tenant screening)TOTAL COST:     7,600.00 (rounded)Monthly CF:          800.00 (yikes...…...50.00 per unit!!)

If it ain't broke, don't fix it...but plan on fixing it in the next 5-yearsIf your ARV is only $315k, you have little equity unless you are accelerating debt paydown somehow.You will have lender fees.

Kathryn, I've been there before with the debt.

If I'm being honest, I have not looked into the legalities of charging an early termination fee in Iowa.