We are one of the top rated property management companies on Google in Connecticut, but we don't have a NARPM certification because we aren't eligible to apply for it.

The fundamentals you need are business specific (in order to be successful in this space).

@Rehan NaseemuddinIt would be ideal to have both cashflow and appreciation.One thing though that was mentioned is that you would be paying taxes on the added cash-flow.It is normally not easy to determine if the cash-flow would be added tax for you as you are eligible to depreciation expense on your real estate purchases.

Just a short background...I am a wholesaler who does fairly well finding good wholesale deals using the fundamentals of good solid numbers before I ever bring a "deal" to an investor.

Bottom Line - as a real estate investor, its helpful to learn the "levers" that will determine the terms of the loans you are eligible for, and hopefully this is a helpful insight into how Loan Purpose affects your rate!

I cannot take two at once, since I am maximizing the amount for which I am eligible one the first one. 

This will be the first year that I get any tax benefits for the work I have done on my first rental, and I wanted to understand the very basics/fundamentals to determine how much I might get back. 

And the important thing is you learned a ton through experience and got the fundamentals down great. 

And if you make under the 80% limit in your county then you would be eligible for the loan, but then of course your debt to income ratio (along with rent for the property) still has to be high enough to qualify for the loan itself just like any other program.  

In this case, your $600k in cash is worth $600k in property value...and you're risking $600k in cash.2 - That same $600k in cash leveraged at 20% (DP) would equal $3M in property value...with the same $600k at risk...and, with 5 properties, or at least 5 times the properties, in cash flow to repay the same $600k in cash spent in option #1.Telling me more debt is less risky is fundamentally off.Physical property isn't like equities.