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.

They want 650,000 as first offer, i bet i could get it lower.

On the other hand, renters are paying the notes so who cares, and a 30 year note would mean lower montly payments, thus a higher monthly cash flow, more houses bought more quickly. 

I have one now just doing data entry of incoming leads and have used others in the past for various tasks but nothing regular.