Higher loan balances we would likely see an opportunity in the future to refinance again due to lower rates so consider a 2-3 year prepayment penalty.Of course if you qualify for Conventional Financing (Fannie/Freddie), there are no prepayment penalties so just calculating out the return of investment timeline on point buy downs.Good luck shopping and let me know if you want to talk further!

Then I can use the rental income from my tax return.I talked to the one lender and said that I have no interest in buying down the rate on the FHA with points.The DTI however does not work unfortunately with the conventional with a lower down payment I am being told. 

Being clear about what you want to do from the start not only helps you stay on track, but it also makes it easier to spot problems or delays before they happen.I totally agree that talking to people is important.

(I recently saw an article in Forbes talking about the Bay Area’s shifting market) And if you aim to hold properties long term, keep your eyes on towns around the Bay that have had consistent rent growth.Here in my home market of Phoenix, I see investors branching out to places like Austin, Chicago, and even Omaha from what Ive heard because they recognize how trends can shift quickly.

If you want it confirmed - then yes, confirmed, assuming that we're talking about a property that will be held as a rental. 

Your best bet is to go to real estate networking events near those areas and talk to those who have invested in those areas.Best of luck!

Also, it depends on what area of the country you're talking about.

I have talked to the park management, and they said current owners do allow renting out as a rental, but the tenants would need to be approved by them. 

However, a few things you could do: You could talk with them & learn more of their story to figure out why their credit score is low as well as the type of people they are.

I would talk first to an electrician as many do fire alarm and life safety.