That could be a viable strategy in your market (OC).

DTI and Credit scores are excellent and the property has been owned for more than one year.I realize that there is a "Find a Lender" function on this website, but I really don't want to be spammed with marketing emails. 

When buying a Real Estate consider property tax new cost specially in today's Market.

@Jorge F RodriguezI would make sure you live in it for at least 2 years to avoid capital gains taxes, then sell the property. 

4 units are great because they give you the option to rent some units out while you're working on fixing the other ones up and there is a lot of rental demand in Cleveland and surrounding neighborhoods right now, so it's a great time to get in the market!  

It's still only 3 bedrooms and 1 bathroom and I am in the hole about 140k and fair market value is about $145K-50K. 

Adding additional assets, a familiar market, buying a house "for free" as I call it, and gaining experience with lower level of risk How did you find this deal and how did you negotiate it?

As our market changes and becomes less landlord more tenant friendly we are looking to sell our long term rental.

The interest rates are what they are but the down payment is the kicker for easier entry into that market. 

Not ideal, but their assessments are still double digits under true market value.