I would rather buy a $600,000 house for $25,000 down (3.5%) and buy another investment property for $400,000 (20% down -> $80,000), than buy the same $600,000 house with 20% down ($120,000).Alternatively, by opting for a 3.5% down FHA loan you could take the $95,000 difference between 3.5% down and 20% down, and invest that money in the stock market.

Also, the housing stock is very old...not unique to RI but maintenance and repairs can run high (especially on the older historic-looking properties). 

I’d focus on income verification - lots of people have funny money these days from asset appreciation (micro cap stocks, crypto, etc.) but may not have as much verifiable income (you’d want $250k+ combined income at the minimum).

Additionally, if needed we could sell some of our stock holdings.

I feel like the question you are asking is how do I become rich enough or make enough money in real estate, stock market or whatever vehicle you are using to live my current lifestyle so that I can not have to work and leave the rat race.This is a very different question then the initial one.  

I was told to look at commercial, but I have never done it....Most people (not REI) go the easy route and say "buy stocks, hold for dividends", but as we know, those do not appreciate or depreslciate 😉.Thank you in advance for your help...

Let’s say by not paying the 20 percent down requires pay pmi, but instead you choose to keep the money in stocks or just want the money in the bank for repairs or piece of mind.I was thinking of buying a Multi-Family but would prefer to have a larger cushion when starting out.

@Tyler Gerhold fortunately in Dayton you can find a number of opportunities given the age of the housing stock in the area.

Obviously I won't buy anything in medium to large cities in Ontario any more, the only place that makes some sense is Windsor, but the tenant population and housing stock seems to be worse than other cities of similar size.

EXP is here to stay and the stock remains undervalued.