. - Downpayment was normally 20% down for investment loans. - The approval is based on more factors than your income and credit so I'd go in and talk with a banker! 

We also have "Townhomes" which are normally attached homes similar to row houses.  

The condition and the value of the property are the most important factors in conventional appraisals.For Hard Money Lending their method of underwriting NORMALLY uses an appraisal as well but their approval is based strongly on the exit strategy of the property.  

@Cheryl Holt The underwriting and processing fee seem high together, normally there is probably one fee for processing/underwriting ranging from $700 to $1,500 or so.

All of the items deducted were normal wear and tear items, AND we had listed each item during the walk through which they never signed.  

So you have to find a property that is likely not so nice, and buy it for a "AS-IS" price, then make improvements and enjoy the reward.Curb appeal drives rental pricing; If an neighborhood rents for $1,400 normally, and you find a rundown home renting for $950. 9 out of 10 times, its renting cheap because the LL wont improve the property, and likely has non performing tenants in it... so you buy at a cashflow price on the $950 minus repairs, then rehab and rent it for $1,400.

You are also correct that the monthly income generated can enable someone to quit working a "normal" job if they desire.  

Ft. do you normally try to hit when buying rental investments?

Without that letter the normal process would take about 30-45 days to close and then you would be buying house backwards with having the money in hand and may not qualify for house that way.

I know they extend the normal 5 years to 10 years but I am unclear if the 2 year requirement is different.If there are any other service members or tax pros that have handled this in the past please pass along your story!