The 20% down is just negative cash flow in month 1 compared to negative cash flow after month 1. 

Work with the IRR calculations to compare your property with negative cash flow versus a property you can find with positive cash flow.

I love this type of concept! 

@Nick Wu appreciate your concept and wish MORE owners embraced it instead of penny-pinching their PMCs.

Verifying last 2-years of rental history and income/employment extremely important to find the “best of the worst”.Tenant Default: 20-30% probability of eviction or early lease termination.Section 8: Class D rents meet program requirements, often challenges to pass Section 8 inspection.Vacancies: 20%+, depending on market conditions and tenant screening.Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation.Where did we get our FICO credit score information from?

This deal will still have negative cash flow in year 30 when I pay off mortgage. 

To address negative cashflow, you could MTR or STR bedrooms in owner-occupied unit, maybe even in the other unit.

Quote from @Dana Yobst: Quote from @Julio Gonzalez: @Dana Yobst While it may seem like a simple concept, it's actually a very complex process that requires significant documentation as well as specific methodologies.

Of course there is no guarantee and part of this was during the spike in values but the concept holds true. 

At a new sale price of $246k i am seeing taxes @ $6888(assuming 2.8) Negative instant equity, no real value add opportunity, no or negative cash flow, i see it as a buy and hope opportunity simply for a 3.8% rate.