If you're putting that little down, you'll need more cash to close in the way of pre-paid insurance and tax reserves.

My experiences before I started investing in that county was taxes were always 'prepaid', so if the bill was due May 1, the taxes ran May 1 to April 30.  

The principal amount of this Note may be prepaid, in whole or in part, at any time without penalty.Should suit be commenced to collect this note or any portion thereof, such sum as the Court may deem reasonable shall be added hereto as attorney’s fees, the LENDER agrees to pay the costs of such additional sums as a court may adjudge reasonable as attorney's fees in any suit.

"Closing costs" can include prepaid items, points, fees to buy down the interest rate, etc.  

This would prevent them from vacating the property prior to the end of the prepaid rent term and the tenant requesting a refund of rent they would claim would be "unused". 

Neither mortgage company involved would listen long enough to even recognize the problem, I contacted my pre-paid legal service and it took several tries for me to show the lawyer the problem.

Cash Reserves Required For Other Properties Owned by Investor; If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second homeIf the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.DELAYED FINANCING EXCEPTIONDelayed Financing ExceptionA cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters: The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV). 1.

Cash Reserves Required For Other Properties Owned by Investor; If the borrower has 1-4 mortgages, an additional two (2) months for every other SFR investment property and second home is required and additional six (6) months for every other 2-4 unit investment property and second homeIf the borrower has 5-10 mortgages, An additional six (6) months for every other investment property and second home.DELAYED FINANCING EXCEPTIONDelayed Financing ExceptionA cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters: The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV). 1.

Tonight I am planning to talk to some neighbors at our newly rehabbed rental about the property, give them half sheets of paper with info about the unit to give to anyone they may know and offer a $50 via pre paid card to them if they refer the tenant we pick. 

With FHA you can pay up to 6% of the purchase of his closing costs and prepaids.