Others will say as little as possible, I like doing 20 percent as it helps limit your risk some.

One large area of interest really is trying to figure out the best way to obtain funding without paying too large of fees that the deals no longer become worth it, but at the same time, I feel like if I stick to conventional investment loans, I am putting 25% down, which ties up a large amount of capital, and more than that, I am forced out of all cash offers and short closes which dramatically limits my opportunities, which is not wise.

If interest rates turn against the individual investor and the individual goes bankrupt then the bank now has to finance the loss from the swap.

The longer this renovation takes the more negative implications there are for us and the township (loss of business for us and loss of occupancy taxes for the township). 

I've been reading these forums like it's my religion and I came across a post recently about FHA loans and how the limit is 4.

We aren't far into negotiations, I'm just doing my research.Also, this lot is zoned duplex, which makes it more valuable to me, but really limits the comps.

With three kids and a wife not working that will likely be the limit of your investing for the foreseeable future.Stay where you are till the youngest starts school and at that time get your wife back out working and then look at moving up in your personal home.  

Each property is going to be totally unique in its costs, so I wouldn't limit your opportunities by focusing on one area, but rather on finding the property that best fit your numbers.  

If the tenants are on an 18 month lease, you run your analysis using current rents as projected income. this lowers your purchase offer, and punishes the irresponsible landlord for offering an 18 month lease at below market rents when he planned on selling. if the lowest price he is willing to accept is calculated using market rents, then you compare your risk aversion and capability to carry the property at a loss for 18 months to determine if it is worth buying still. likely not depending on how far under market rents are.

I believe the UGB will have expanded somewhat but the available land will still be limited when compared to demand causing an increase in price.