Terms for your first deal include 12% interest rate and 4 points, they are willing to negotiate future deals but are pretty strict on the first one.  

If you are strictly looking for return on your investment you simply need to compare your projected ROI for your investment with your mortgage interest rate.  

But strictly looking at cash flow based on expected rents, the numbers are still on the positive side and are okay.

As of today I'm sitting at about 27k after selling off as much as I could, setting a strict budget, and attacking it while still setting aside some savings (currently 5k at $200/m) and putting into my TSP (currently at 40k at $500/m).

-Have strict criteria when screening tenants.

Corporate landlords make no concisions for tenants irresponsible practices.My family has been in rentals since the late 40s early 50s I know what I am doing in maintaining strict policy enforcement.

As with everything there are pros and cons - so a conventional loan will have better terms (rate, payments, etc.) but they are pretty strict to underwriter.  

Some states are getting strict.

Your CPA will appreciate it too:)Open accounts STRICTLY for your business.

I was planning to do an owner occupied type loan for it but I was curious if certain loans are less strict on what the property needs in regards to livability of the home.I'm not interested in a 203k because I plan to slowly fix everything myself while hopefully the other 2 units pay for the property.thx