If you can pick up a property cheap enough, find good renters and create a positive income stream.

find out what the payoff is....add 10k moving expense....thats your lowest possible purchase price unless you feel the homeowner is in a position to take less than that and bring money to closing....doubtful it would seem.if 80% of the arv is greater than the payoff plus 10k, you're making a profit as long as your buyer is willing to buy the property for 80% of the arv.

Perhaps for a small fee.You want REO -- google specific real estate agents in your zip codes who have been positioned by a lender or lenders to market the REO.

Running all the numbers, I figure I'll have a positive monthly cash flow of about $75 after paying P & I, HOA dues, Taxes, and Ins.

After 1 or 2 I would be in much better cash position to start a more normal cash down payment scenario.

Personally, I like to have $100 per unit per month positive cash flow.Good Luck,Mike

Its all about position power...Good luckMichael Quarles

Every property must stand on its own and every property MUST have a positive cash flow of at least $100 per unit per month.

A rental property should have a positive cash flow.

The 2% "rule" is just a screening tool that says a residential rental property must generate a monthly rent of about 2% of the purchase price if it is to have an acceptable positive cash flow.