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I tried to finance a rental property last fall, and thought I had a sound plan.
Turns out that both banks insisted on charging a higher interest rate for a "revenue" propety. They also had a chart of the city of estimated rental income and determined that I didn't have enough of a deposit to lower the mortgage enough over any reasonable so that the payments were suffcient to generate a positive revenue, when city taxes and maintainece were considered.
The bottom line, which I was told by both banks, is that it would be unlikly that I would be able to meet the payments for the house on top of my other expenses over a 4 to 6 month period. As I was looking at buying in a student area, it wasn't unlikley that I could be stuck with an empty house over a summer, so I actually would have put myself in a potentially tough situation had I been approved.
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