Based on the info you provided, it sounds like you have around $100k to put down while carrying $300k in debt service per property.  

My initial plan was to purchase with cash then take a mortgage out after it is rented for 3 months then use the mortgage money and add 20% more of my cash on hand to buy the next place; I could have done that to purchase 4 houses which would have my passive income at a comfortable level.  3 of the 4 houses would have a mortgage and I would have mutual funds and 1 house to cover the debt of the 3 mortgages. 

Your cashflow is breakeven while you pay off the debt but you own it free and clear in short order.  

In the financing aspect of the software, I show them earning 3% compounded monthly, paying interest only, monthly for 5 years.I also plan to structure a hybrid debt/equity partnership.

Before that you probably would not meet the Debt to Income Ratio requirements.

I could watch my property values drop to the point where my debt on properties was higher than my values (upside down), and because I had bought with such high cash flow (which actually grew), it didn't matter.  

FIRPTA requires escrow officers, closing attorneys or other settlement processors to withhold and remit to the IRS 10% of the gross sale price unless the IRS issues a Withholding Certificate of Exemption to the closing agent. 

My "deal" is an acquisition of a Class C- multifamily property in Tempe that I would purchase with short term construction financing, renovate and refinance into perm debt and try to recapture all or part of the initial equity. 

@Steve VaughanThe "music" can't stop if the Fed plans to continue paying its debts.  

Foreclosure actions wipe out some of the property owner’s debt, like the original mortgage (taken out at the time of the home purchase), HELOCs, and second mortgages.