This person claimed $4,758 in insurance (Line 9), $6800 in mortgage interest (Line 12), $1200 in repairs (Line 14), $8326 in taxes (Line 16), and $4000 in depreciation (Line 18)….for a total of $25,084.

You cannot use a revolving credit card to use a down payment it must come from a liquid reserve, asset or open end mortgage like a HELOC.You will also be required to have and show assets and in most cases a PITI reserve of 3-6 months depending on the loan size and program. 

On a purchase mortgage, it can be about your intent to rent it out, but on a refi what matters is the current actual non-hypothetical use of the property. 

If the place is vacant can you pay the mortgage yourself? 

After paying cash, I now owned the property without any mortgage.

I am leaning a certain way on the deal and I'm curious to see if other investors align with me or not.Sales Price: 102,900, 25% down (assuming 5.625% interest rate on 30 year fixed)C Unit in C Neighborhood, increases in quality could improve rent by $100-$200 p/m, estimated.Income: 2 units, total rent is $1750 per month / $21000 per yearExpenses: PITI: $856 per month (444 mortgage, 67 insurance, 345 taxes)PM: 10% / $175 per month (I will be managing for the foreseeable future)CapEx: 10% / $175 per monthMaintenance: 8% / $140 per monthVacancy: 8% / $140 per monthWater: Average is $129 per monthFlood Insurance: (Damn AE zone) is $57 per month (backed by private insurance)All other expenses covered by tenantsThe numbers Cash Flow Per Door of $39 per month / $468 per yearCF of $78 per month / $936 per yearCOCR of 3.03%Value Add/My Questions: Rents are low for this area -- rentometer, Craigslist, and 2 BR comps indicate 2 bedrooms should be in the 1000 to 1100 range per month.

but any rent may not totally offset the entire mortgage. 

And is cheaper to run" The tenant had gone out and bought a bunch of window units under the illusion they are cheaper to run.

Throughout my ownership I’ve always thought that the best play is to pay off the property and then have the cash flow as income after doing so, to date I’ve never really been cash flow positive but always paying the maximum I can on the mortgage while having the rent cover all of those expenses. 

I have been applying for mortgages and lending recently and have encountered a hiccup.