I believe up to close to 40% down with a 720 or greater credit score on a conventional loan product could give you the best interest rate. 

Some of these renters are capitalizing on low interest rates and choosing to buy, but many are unable to buy due to lack of down payment or credit factors. 

Tips and tricks?

I would appreciate tips from anyone who has experience making this model work in these areas or similar markets.Looking forward to your advice and recommendations!

As long as the property generates enough cash flow, you may qualify based on the asset alone.Another route is to explore portfolio loans from local banks or credit unions.

And don’t forget to check out Airbnb host groups—hosts love to share tips and contacts.For setting up your place, a smart lock is a must—it makes check-ins so much easier.

Focus on keeping upfront costs down and shop around for lower interest rates or lender credits.

As lenders, well issue a prequal/preapproval letter if we've analyzed your income, assets (bank and brokerage statements to establish that you have the liquidity to afford the down payment, closing costs, and reserves), review credit of the guarantors, review the relevant experience to ensure that we're not throwing our money away on newbies that are wandering around in the dark, and have put together a reasonable plan of attack for the project.

For a traditional Heloc at most small banks/CU's, the rate will be variable and will be WSJ Prime + a spread that represents the borrower's credit risk.

So, you, as an individual, may not get to the same rate that a MASSIVE national builder can...but you can certainly offer credits to the buyers to help buy down the rates.