I've ran some simulations and the properties are showing negative cashflow (-1% -2%) for the first 3 years, but then after year 3, things start to go back up with positive cashflow.I wonder if it make sense to take this risk, buy the home (with 20% down), maybe refinance later on (considering that the rates will go down) and eventually improve the cashflow?

Perform a gazillion computer calculator simulators (BP has some. 

(as in, don't do these steps just in your head trying to visualize in simulation form what you need to do at step 4 when you didn't actually take the first step et..

If you do figure out an arbitrage strategy, you will make some temporary profits but eventually the computers will detect your wins and start front-running your trades.It helps to have an advanced degree in Math/Physics/Statistics, access to sophisticated simulation software to back-test your trading strategies, and the intestinal fortitude of a Navy Seal :)

The spreadsheet which gets dumped out of our simulator has eight tabs in it and is terribly busy ... when I share it with folks, eyes usually glaze over.BTW:  I prefer MIRR

All in One Simulator Discussion with Caeli RidgeI purchased a few rental houses and Ridge Lending did the mortgages for me.  

For me it's been as simple as simulating a correction and removing, for instance, flip income, as well as reducing gross rents. 

I had a degree in finance and economics from a Big 12 school, owned several single families and a multi family property, and yet every time I played that game I learned something through the simulation that helped me invest and run a better business.

It's very easy to simulate this condition with excel.

I always assumed they have different title insurance companies that they write through.Even if you have trouble finding a title company to allow the simul close, you can just use transactional funding and make your closing on the A to B go through with a wire from your one day loan.