The bank I deal with loans 80% to value, so I need to make sure I’m increasing approx 20% (ARV) after renovation value, so I can BRRR my initial cash back out for the next deal.

@Cody Qurollo, you bet!

Initially when I began educating myself, I wanted to begin with a duplex (easier to begin with for self property managing) but now I want to make the first deal a great one so I can get out of the rat race as fast as I can. 

In 20 months since the initial purchase it had a broken water heater a major leak in the front yard watering system, and found that the prior owner severely misinstalled the laminate flooring.

I'd recommend initially proposing the 70% etc. 

Also it seems like financing is their real business as when I told them I was planning to initially do an all cash buy & rehab  they said those using financing get priority.And like you mentioned they really push that 10k figure that you can get in and get started with only 10k cash but then you're taking on a lot of high interest financing based on their figures working out and selling quickly.

OR - if your VA is tied up on the initial property, you will use the 40K as a down payment on a conventional loan.  

)                           -   Gross Monthly Operating Income              32,642.00 Monthly Operating Expenses Monthly Property Management Fees                   832.00 Repairs and Maintenance                1,000.00 Real Estate Taxes                5,241.00 Rental Property Insurance                1,959.00 Homeowners/Property Association Fees   Replacement Reserve                2,000.00 Utilities                1,291.00  - Water and Sewer    - Gas and Electricity    - Garbage    - Cable, Phone, Internet   Pest Control                   155.00 Accounting and Legal                   150.00 Advertising   Monthly Operating Expenses              12,628.00 Net Operating Income (NOI)   Total Annual Operating Income            391,704.00 Total Annual Operating Expense            151,536.00 Annual Net Operating Income            240,168.00 Capitalization Rate and Valuation   Desired Capitalization Rate 10.00% Property Valuation (Offer Price)         2,401,680.00 Actual Purchase Price         3,100,000.00 Actual Capitalization Rate 7.75% Loan Information   Down Payment            620,000.00 Loan Amount         2,320,000.00 Acquisition Costs and Loan Fees              60,000.00 Length of Mortgage (years)                          30 Annual Interest Rate 4.970% Initial Investment            680,000.00 Monthly Mortgage Payment (PI)              12,411.76 Annual Interest            114,527.10 Annual Principal              34,414.02 Total Annual Debt Service            148,941.12 Cash Flow and ROI   Total Monthly Cash Flow (before taxes)                7,602.24 Total Annual Cash Flow (before taxes)              91,226.88 Cash on Cash Return (ROI) 13.42% The property is being given to me after completing 40 year certification (updated plumbing, electrical, parking, most units are decently remodeled.

It sounds like a classic risk/reward issue, not like an "open-shut" case as depicted from all my research I've been doing so far.I'm trying to realize if I'm missing something here, will appreciate your inputs.Please forgive me if this question seems trivial, I tried looking up the answer prior to this post but most of the cases I've seen spoke about different cases (low initial liquid assets / high cash-flow properties + snowballing / etc)Thanks

In that case, a big umbrella policy might be your best bet in the short term until you have more to protect.