@Stephen Meche Pets add risk and you should be compensated for the risk...just like your rents compensate you for rentals in a lower class area.

With an FHA loan, you can get a much lower down payment but you'll end up paying PMI each month.

@Kellee Koenig - I'm not sure where you are living, but assuming it's in a lower priced market if you're looking for a ~$100k property. 

If house won't appraise then lower price to what will work to get to that LTV.

Another possible strategy that lowers the risk but also lowers the rewards is to keep your existing property and rent a house in Milpitas.

I do not know your price point on your property, I have lowered rents as much as $50 per month from the previous tenant, due to current conditions. 

Did that help contribute to the lower cost or is it typical in the area to have the pipes run outside with insulation?

While the return on these is lower, it will allow you to defer your gains until you find your next multifamily.Best!

I would rather see you taking a low down payment loan while doing  the minimum time as an owner-occupant in a triplex or four-plex house where the renter might at least lower your rent to make the debt payments, while adding value while you are there and managing next door places. 

Luckily, I am hoping to close a deal that will lower my own living expenses so I will be "cashflowing" big time.Definitely soak up as much as you can.