Heck, if the laws haven't changed you could turn around and rent it out for up to 2.5 more years having someone pay down you principle even further then sell and still pay no taxes on the gain.* last I read you had to live in the property for 2 years of any 5 year period. 

Am I being to short sighted or have to high of expectations?

I've analyzed it to put back 20% of the principle from cash flow a year that way I'm not forced to refi the property.

In hind sight, there are things about the deal I like and some that I don't.

The property is in rentable condition.Agreed Upon Price: 146000Wrapped in Closing costs :5000Total Loan:145,700Monthly Expenses (Tenants Pay Utilities)Principle and Interest ( 3.8% for 30 years): 690Insurance: 200Taxes: 303MPI: 1048.3% Vacancy: 228Cap Ex 8%: 220Maintenance 8%: 220Property Management 10%: 275Water and Sewer: 50Total Monthly Expenses: $2,290Gross Monthly Rent: $2,750Total Monthly Cash Flow = $460Total Annual Cash Flow = $5,5201 year Cash on Cash Return = 62.13%Total Cash Needed = $8,884Down Payment = 5285Closing Costs= 2575Title Insurance= 600Pre-Paid Tax= 2424Pre-Paid Insurance= 3000Wrapped CC= -5000Does my math make sense to you?  

I really have my sights set on multifamily in C&B type neighborhoods.

Once you have a property in sight, send them the details, they'll analyze it, run comps, etc, and if it's a good deal he'll give you the proof of funds letter the same day you reach out.

In hind sight, I probably would have been better off just keeping my mouth shut.

Separate the deal- have regular rent payments and then an additional payment that can go to the principle if they pull the trigger. thats only a few things. there are many pit falls you can fall into without the proper paperwork at the start.

I understand how markets work and the basic accounting principles of real estate too.I am asking for any advice that anyone may have on this matter.