Sophie, I highly recommend that you find a really good lender who can keep you updated on the current guidelines, as they do change frequently. My best advice is to "start with the end in mind". This means that you should start your due diligence with finding the right financing so that you know how much the down payment and monthly payment will be, in addition to any requirements/restrictions that could impact your profitability. Your down payment will be 20% of the purchase price. It's is the standard down payment required for investment properties, unless you live in one of the units (which could reduce the 20% requirement).
Besides the typical hazard insurance required for all properties, you will also need to get at least 6 months of rent loss insurance. Rent loss insurance covers situations that would otherwise keep tenants from paying rent such as a fire, flood or other weather event that makes the property uninhabitable (for up to 6 months in this case). During this 6 months, the property would be repaired/rebuilt so that you can begin receiving rents again in order to pay the loan payments. The rent loss insurance pays the amount of the lost rents (up to "market") during this time. I believe most lenders require it, but even if you paid cash, you should obtain this insurance for at least the amount of rent that you forecast to receive from the units.
I began underwriting investment properties in 1989 and would be glad to discuss the details of obtaining a loan, returns on (and of) your investment, reasonable projections and assumptions based on various markets within the DFW Metroplex and certainly, the search of a property that would meet your objectives.
I'm available by email, phone or text.
Brent Rice, Top Recommended Broker
The Rice Group, Inc.