As of today, I paid off $40,000.00 in debt (all I have left in debt to pay is the mortgage itself), so far I’ve saved $25k for my first rental (my goal is reaching 60k before I actually take action and I’m afraid to purchase without creating an LLC first).  

You're essentially going into debt on a car just to allow you to then go even further into debt on a property. 

You'll want a HUD-1 settlement statement to prove that an actual sale took place.

If you do not have credit look at start establishing it in small positive steps.If your credit is bad think about what led to those decisions and formulate a new plan to turn it around.https://www.annualcreditreport.com/index.actionGood credit can help you to borrow good debt at low rates that helps you create more cash flow.

Purchase price: 270kCurrently rented for: 3500/monthExpenses: 600/month (taxes, insurance, utilities < water for one unit)Prop Mgt: 300/month Maintainance: 120/monthCapEx/Rainy day:  230/monthVacancy: 175/ month (5%)Debt service:  1090/ month (@5% interest)Total:  2500 (approx)Cash Flow:  1000/month (200 per door)Downpayment: 70k (25%)Cash on Cash: 17%What are the downsides of such a package against a multifamily unit?

(Non-lienable debt).  

 (50% of gross rents will go towards expenses not including debt service: taxes, insurance, management and capex)Well done Ross, I would say this is a definitely success story because you're taking action, most never do.  

They are usually fresh out of college with lots of debt--- that means they can't afford a mortgage.- Why buy a house you have to all the work on yourself (mowing the lawn, watering the grass, etc) when you could live in an apartment building with an on-call maintenance man to do the work?

Chi:Absolutely, if your debt ration supports or can sustain two mortgages then you should be ok.

Sub 2 means you have the deed but someone else has the debtTo sell you pay off the debt and transfer the deed@Llpeng Wu@Bill Gulley