@Greg Dorn I’m interested in the lowest down payment and using my funds the extra funds I have for other types of loans.

In my experience, almost always you go over budget, and to be honest if it were a property I would be keeping as a rental I would put a little extra into it.

Will people pay extra rent if these places are hip?

The extra money will come back to you once it is all done.

I hope this gives you some hope and an extra boost of determination today.

Some "cons" of the 203k are:MI (mortgage insurance) for the life of the loanUpfront MIP (mortgage insurance premium) can reduce the effect of the 3.5% down paymentCan take 15-30 days extra to closeNot all industry partners (Lender, Realtor, 203k Consultant, and Contractor) are as knowledgeable/experience as neededSlightly higher interest rate compared to FHA 203(b), which is the normal FHA loanCannot repair/add luxury itemsSome areas can have lower max loan limits that what is needed to do a 203kExcept for qualified non profit groups, required to be owner occupied for min 1 year  There are many pros to the 203k, but above are just some of the "cons." 

Rates are still rather low, so a bit extra interest each month won’t hurt much and you can do better putting that extra cash flow into your next investment.

My thought would be to keep the cash flow higher, while giving yourself the option of paying extra towards the mortgage.

. $500 (due to a promotion I received) and in addition we have regularly paid anywhere from $30-$150 extra principle a month when we can- because I am SO desperate to pay our mortgage off before we are 60!

And I know she'd love to make some extra spending money.