They cut out all but the best locations and were way more cautious.

Sadly, it seems that cash flow on long term rentals with 20% down just does not exist in most desirable locations.

Too bad you can't buy something owner-occupied, put 5% down with the best interest rate, live in it for 12 months (and fix it up), rent it out and repeat the cycle.Here's some other info you might find useful:----------------------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

We found an opportunity to purchase a huge SFR with two kitchens located next to a commercial zone which was previously used as a sober living facility.

Find one in your  town certified since 2007 http://proadvisor.intuit.com/search/index-standalo...  

I had a call with a loan officer yesterday and I am very intrigued, but haven't heard much in recent discussions for this product or found anything in the search bar for this bank. 

In those days it was possible to locate and tie up a “killer” deal, and close the transaction with absolutely zero of the investors own money.

I would search for other HML

For long-term growth, consider newer single-family homes in high-appreciation suburbs or well-located small multi-family properties.

Also make sure to build on a property located in a desirable location with larger pop density and if holding for rentals, charge median rent for that market as lenders want to see a bigger pool of buyers/renters available to occupy/sell.