But with this kind of negative cash flow, you are betting that appreciation is growing more rapidly than the interest you're paying--just to beat putting $900/mo in a savings account.On top of that, you're still in the window where you call sell this tax free using the primary residence exemption.Using the $80K on a $350-400K multi or two $200K homes on a 30 year fixed will provide the same appreciation while having someone but you pay off the mortgage.

As far as the location I'm somewhat well versed from my time in town visiting friends and family over the years but could use some local insight on management companies, local realtors, contractors, etc.

What kind of place are you looking for?

What kind of properties are needed in this area?

Good luck Thanks I'll make sure to as about that kind of an estimator.

I am with @Jeff Filali on this one... his math formula indeed makes sense  (heck if you want to see real life documentary how I am executing his formula in real life simply visit my blog).. 

@Daniel ShowmanYour questions are very common in this space and if you do some quick searches on BP, you can read up on all kinds of opinions and information from other members here. 

I have been kind of stuck in analysis paralysis and keep passing on deals.

@Upen PatelAre there general rules of thumb or any kind of specifics in order to pass the "smell test" or is it more lender specific?

Yes, but it kind of sucks if you already own the property and want to develop it yourself.