By using borrowed funds, investors preserve their own funds to keep sufficient Reserves on hand.

Im looking at three homes in one area that I found,  one just went on the foreclosure list and the other two are just sitting empty.

Call three agents and get quotes. 

This is especially important if you won't be able to save as much.If you decide this deal is too expensive for you tastes, and don't want to offend your family friend by selling the deal, consider a three way deal between yourself, the current owner, and a partner.If you pass on this deal, you might want to consider looking outside of Midtown to build some equity.

If you have a second home with sufficient equity, it'd be pretty easy to get the loan IF you have the cash reserves (3 mos payments). 

Turns out they don't pay you according to hours spent in the classroom or in front of a computer reading, and I have a wife and three kids to support.  

A lot of folks hype pulling a partner in - but for building cash flow, especially purchasing your first property, I don't see a better method than getting qualified for an FHA loan, save up that 3.5% and go buy a two/three/four-unit where numbers make sense.  

Thanks a lot guys for the reply and keeping the conversation going :)In last two to three days have met lots of good people here and started good relationship !

Most of the time they are two to three years.

A list of at least three references for work he has previously done for clients and be sure to follow up and check them.