I'd say go into the market that you have the best team. additionally, when starting out, if you can house hack, this will lower the upfront barrier for a down payment and you'll get favorable financing terms.

If there are medical bills, or something similar causing the lower score, I'd let that slide. 

Is it better to do everything up front at once if you are planning to keep the house long-term, or to spread out over 5-10 years, even if it means a lower appraisal and lower rental income in the beginning? 

With a rate of just 3.2% (and even lower after taxes), you’re coming out ahead while the lenders are taking the loss.

If you plan to hold long term, separate utilities and go heat pumps for the new units: they provide heating, cooling, and dehumidification for the basement, play well with tenant-paid electricity, and the rebate lowers your net cost.

A zero levered project will have much lower returns (and should have lower risk profile) than a 80% levered project. 

As a seasoned investor with capital cushion using it as true leverage would appeal to me if the rates were lower than they are now.

@Melanie AguayoHey Melanie,If you’re open to Midwest markets, entry costs are often lower than coastal areas, so it’s possible to start with smaller down payments while still finding strong cash flow properties.

From an investor standpoint, when you factor in lower CapEx, warranties, energy efficiency, and potential rate buy-downs, new builds can actually offer better risk-adjusted returns than older resales.

Each payment you receive then lowers the installment ar balance, the deferred gross profit and you debit cost of goods.In 2015, I began teaching Accounting for Land Investors to show how it's done and this is what I do in my own business.