To Omar's point, I do think I will have to work with conventional loans and see what lenders will let me have a lower down payment.

Hence, a property's intrinsic value (appraised value) might be higher but its selling value will be lower as the buyer has all the power. 

My purchase price was lower than the property value shown in the public records (deal between close family friends), and so was the appraisal.

I’d try to go lower- more like 300k

Appreciation added another $100K in taxable gain equity. 

You live in a lower dollar amount area, so I consider that a small amount, where I live in San Diego, the commssions saved are significantly higher, but I still hire realtors at full price .

Maybe if I would have been here in 2009, i could have :)What I'm thinking of doing is going with something with a significantly lower capital investment (maybe $40-$60k?)

@Kimberly Weatherford Based on the tenants shiftiness regarding taxable income, I wouldn't be surprised if she were able to come up with a reason she had different requirements than other applicants.  

The following is an excerpt from Andrew's original post...WHICHEVER IS THE LOWER AMOUNT (super important)I understand the caution in all this, but entertain a scenario..I'm having a very difficult time passing up cash-only deals based solely off the knowledge that the ARV really isn't going to go anywhere due to the home being livable/only needing cosmetic upgrades/being sandwiched in between 2 or 3 other units of a multiplex...I say again I'm having a hard time forgetting these deals because they would cash-flow nicely and are affordable.

Seems like it only works in middle to lower class areas.