:)So I can come up with the whole 348,050, but it will diminish my cash savings to the point that I may not have a contingency fund in case of emergency for many months

You would be surprised, or maybe not, at the number of requests they receive for lists of various types.  

Purchase Price $100000.00 Property Value $100000.00 Loan Rate 6.375% Loan Amount $80000.00 Loan Points & Fees $1800.00 Closing Costs/Title Ins/Commissions $2000.00 P&I Payment  $500.00 Reserves to set aside (emergency - 4 months) $5098.33 Repairs Needed $0.00 MONTHLY ANNUAL Down Payment (20%) $20000.00 Gross Operating Income $1400.00 $16800.00 Taxes $118.92 $1427.00 Insurance $208.33 $2500.00 Expenses Headache Factor % of GOI for evictions, turnover, in C, D, F areas 0% Management (accounts for placing 1 tenant/year) % of GOI 13% $182.00 $2184.00 CAPEX % of GOI 5% $70.00 $840.00 General Maintenance % of value 1% $83.33 $1000.00 Utilities 0 0 HOA Fees 0 0 Flood Insurance 0 0 Vacancy (1 m/year) 8% $112.00 $1344.00 Expenses Percentage of GOI (50% Rule) 55%

One surprise for me has been demand for corporate type housing.  

I looked at a mailing list generated for 2 of the zip codes there and was surprised how many homes are owned outright or have been owned by the same person for many years.  

Its very important your run the numbers and make sure you can live with the HOA rule and maybe surprises...

How much cash do you keep in reserves in case of emergency.

Don't be surprised if they recant their request when things settle a little.  

They won't just give it to you, but if you prove yourself as a good risk, you will be surprised at how easy the money is to find.Knowing that, you are now positioned better with how to start the coversation.  

Surprising you are having such issues in your market.