You can play around with the numbers for an interest only loan with this calculator:  https://financialmentor.com/calculator/interest-only-loan-calculator

Does your deal have a value add play to raise the rents in the future. 

Chris picked up a good rental for now  with a nice appreciation play in the future.

I'm not sitting on a pile of money, but I have a little cash to play with.Finding - I looked into buying a list of distressed multi's (2 doors or more) within 10 miles of my house.

Residential, probably a long haul, Retail is a better play, Industrial could be a home run.

@Derrick Gray the industry is not easy and it's not a get rich quick play.

This plays right into the hands of tenant groups.

I've played with some calculators on the sites and the increase with the PMI doesn't bother me too much as I plan on living there and living in an apartment would cost about the same anyway

You're playing with Fire and could potentially get burned badly.At this point the bank is almost irrelevant because they don't own the property,the seller does.You have to negotiate with the seller and make a written offer to be taken to the bank for approval.Not going to be easy with a short sale situation and the bank is already upset with the seller and now preparing to foreclose soon.The tenants are going to be the hardest part in this mess because they have just restored their tenants rights with the accepted rent whether it was the entire amount or not.I doubt the bank will stop the auction unless you offer much more cash than you should and no contingencies sight unseen.Expect the inside to be trashed and need a full gut job remodel and make your offer accordingly.You'll have to formally evict the tenants after taking possession

I played dumb and told the park owner I was so sorry but I was going to have to move 1 or both because I couldn't find anyone satisfactory to the park.The park owner was stunned (parks usually hate to have homes moved) and asked what she could do to help.