Be careful about the other borrowing mentioned above - too much of that relative to your income will hurt your Debt to Income ratio and either prevent you qualifying for a mortgage or push your rate up.You also need to know what a good deal looks like and how to run sales and rental comps (or have a realtor who will do it for you - you want them to value the property from an investor's perspective - ie: most likely appraisal value after repairs).

They take on debt based on the job that pays high money will always be around.

Hello,I am a doctor with about 300,000 in medical school debt.

Typically the biggest issue is debt to income ratio, as both of those loan types are low down payment loans and typically have higher monthly payments. 

I'd run a credit check, to verify past addresses and to see what debt they have.  

If you have access to $30k homes, can afford the costs of renovation and the costs of the resale while remaining profitable you're only a "friends and family round" away from being in business.This is a sum of money that banks are just not going to write short term debt on without excellent credit and collateral.

The grittier matters of concern is likely to be your mortgage rate and consequently your monthly payment and other monthly expenses and to what extent these expenses are completely covered from rental income (think debt service coverage).When researching, you of course want to look into the FHA loan limits on a multifamily as it applies to you and where you are able to buy in/at per the limit.

Once you have that income number in place you can then look at expenses and debt service on the property and determine if it makes any sense.

Hello BP, sometime ago i read "The definitive guide to using seller financing to buy real estate", and only thought that to prevent due on sale clause, that would mean i can only used this method on debt free property.

  :)As we only have 1 unit currently under possession in our company, (LLC formed, funding to be soon), It's really about the paydown for all of us involved.5-10 year timeline means major equity to us, unless of course, the bottom falls out and they become worthless.