Yes realized it bit later, posted it in correct forum

For that area, the maximum FHA loan amount appears to be $1.4MM, but please correct me if I am wrong.Aside from the 3.5% down, I have also read there will be 1.5% PPI and closing fees, so should expect to spend 6%, but can refinance the PPI after a year or two. 

I have come across a few properties where the numbers do make sense, its all about meeting the correct RE agents and telling them upfront what your criteria for a property is.

Unless you have a lot in reserves, development may not be the correct path. 

With that said, I know that @Brandon Turner has said (if I remember correctly) on the podcast that he likes to get at least 12% cash on cash return and something like $200+/month in cashflow.In the stock market I am confident in about an 8% return over the long run so I obviously want to get a better return than that if I am going through the work of buying a property and also managing the rental.

I corrected the Ad and had about 100 responses for the typo ad.It really should be obvious that Vacancy is dependent on 3 factors, 1) the Asking Rent versus the FMR ,2) How dense is your rental Market and 3) What is the current vacancy rate in your target area.If you build your Business Plan with these details, you will be surprised how accurate they can be.

@Ned Carey is correct: if you don't have a written lease then it's a verbal month-to-month lease and you are still required to abide by the law as if it were written.It's very important to learn your state law inside and out.

Please correct me if I am wrong but it seems to me that the only real way to make decent returns from multifamily construction is by throwing up large pre-fab 10+ family units.

If I am understanding you correctly, you are asking if you can receive a "2nd mortgage" on a property for your down payment (or some if it).

I’m pretty sure i did it correctly but now i wanna pull permits for the rest of the house.