Correct me if I am wrong but I feel like for this investment to be worth my while, I need to get the a lower price and interest rate. ..."1% rule" = purchase price of 100 times monthly rent; 180 times is like a 0.56% and that is a recipe for disaster.Depending on the rent you gross, 1% rule properties may be a break-even or losing proposition in the long run, especially if you are financing the acquisition.

If you borrow against a property to the point of no equity and spend all your cash, now you have financial risk even if you don't have (as much) lawsuit risk. I

The only risk is not being able to keep property in good repair, but this is where we have to make good choices on the way in.Think about this guys, CF is king – it gives you options.

If I want to get risky there are shady areas within 20 minutes of me that cost 10k-20k and rent for 600-800 monthly.If anyone can explain the lending process to me and if you can count "estimated future income" it would be greatly appreciated.Thanks.

I'd say that risk is lower given your explanation.

When ever a borrower puts down less than 20% and has less than full documentation for income and assets, the risk is greater so the interest rate will be higher.

It will be a higher rate and give you a lower cash flow/ROI, but the risk is greatly reduced.

I worked with a colleague several years ago (pre 2008) who had a strategy for this type of investment, but it was risky and complicated.

An equity split arrangement outlined in a note seems risky to me.

Not sure what the real risk is with such low rates, the risk will increase as rates go up.Most all that I did was short term, but did tons of CFDs at longer terms.