Yes the monthly payments does not lower the principal but I was going after seller financing, which is more important.

I'm still looking for a listing agent who specializes in renting lower income properties in Philadelphia.

For me personally, my vacancies are much lower, so I use 5%, but I also have single family homes and tend to keep tenants for multiple years.

A third option could be to ask to lower the price/for a credit due to the repair $ and vacancy cost that i would potentially now immediately incur.Thanks for all your help!!

Are they just rented more often at a lower cost?  

We are looking at building a new team as we need to get our business back in order so we can better protect our assets here in the States and also lower our taxes as we have not focused on this aspect having lives and worked primarily overseas.

There is no state income tax in Texas and property costs are much lower than NY.

As always, there is a lot that goes into these transactions under the surface level.

However, this explains the lower prices for the intimate cabin setting that we are looking for.My investor wants something close to an services and attractions, hence opportunity for vacation rentals, when not used by the primary owner; but, still have the ability to provide a private intimate/eco-friendly setting for those wanting to get a way from it all.

Closing costs: $3515 (3.5% down on FHA)Conventional 30 year @ 3.25%Income: Current rent: Lower 2BD $800 (rented MTM but I think I might be able to get $900)                     Upper 1BD $500 (I would occupy upper)Market Gross rents: $700-1200 2BDMonthly liabilities: Mortgage (P&I): $399Utilities: $150 Vacancy: $65 (5%) CapEx: $65 (5%) Insurance: $90 Repairs: $65 (5%) Property Management: Self managedProperty taxes: $408Total expenses: $1241Monthly cash flow~ $58.64/mo (Unless I can get $900 for rent then it would be ~$145/mo)My current rent is ~$500/mo with utilities.