And finally, the added debt service could be a real problem if the income is stressed in a period of economic weakness.

Dave,Great thing about the VA loan is $0 down and lower interest rate. 

They also seem legit and have good reviewsI will use my escrow company; they quoted me a lower fee for the same policy, and will negociate to have the legal and doc fees waived

I had been trying to stress to people the importance of asking and knowing why behind everything as opposed to just just wanting someone to tell them the answer.

These comps are renting lower, no garage or second lot(highly sought after from tenants in Cleveland of all places in the densely populated city), and worse location.

The idea would be sellers are eager to get rid of the property and, therefore, more willing to take a lower price.- Search Craigslist for FSBO's?

A) Location location location - there are only ever so many places that are going to be walking distance from the chairlift, and so investors are willing to take a lower cap rate with the expectation it will be more than made up for in the end with appreciation. 

So in reality you would only be saving 3% and there would be less motivated buyers viewing their home, which typically results in lower offers and ultimately a lower sales price. 

And Zack, I was leaning towards the FHA with the lower down payment.

Could I use rental income from the multi-unit, and future rental income from my SFH to lower my DTI?