You won't hear me argue the point that BP has decreased the number of idiots in this sport.  

There's more upside if you can increase rents further and decrease expenses, but this is my directional sense of the deal.Unit 1: 1800Unit 2: 1050Unit 3: 900Unit 4: Owner (900 after move out)Gross Rent: 45,000 (55,800)Net Rent: 40,500 (50,220)Expenses (rounded up): 18,000NOI: 22,500 (32,220)Debt Service: 22,900Cash Flow: -400 (9,320)The key to seeing solid returns on these small multis in this area is minimizing turnover costs and vacancies. 

So, by putting less down I maximize the return on my down payment and also decrease my risk?  

The whole point of paying them off as much as possible as soon as possible is 1) help eliminate liability risk in the event the market changes, rent rolls decrease, W2 income disappears etc and 2) Be in a position where I can fully leverage them again in 4 - 7 years when I am ready to acquire another 4 - 10 duplexes, small apartment building etc and ditch the W2 for good.For those that deal with rentals and used them as a way to ditch your 9-5, how did you do it?  

Thats True Jon that buying right "helps," your DTI however I've seen many times where it was the right buy in investor theory however the investors accountant goes to town when filing the returns so the cash flow looks lack luster at best.So by buying right the investor will actually decrease their DTI ratios (qualify for more) but inadvertently I've seen investors stab themselves in the foot because they do not understand how the cash flow statement is determined from the accounting end so they end up frustrated.

When interest rates increase, home prices will decrease.

I'm not sure if this could cause price decreases , but it could cause appreciation rate slow down.

If they see your score drop significantly and that is unusual for you, they may decrease your credit limits or worst case close your accounts. 

The rates have decreased .375-.625% depending on the loan product and apply to rental investment property such as single family homes, condominium units, 2-4 units, and multi-family.

I guess I'm mainly looking for your experiences in cash flow, reversion values, vacancy increases or decreases as the market changes.