If the change has occurred and buyers are now doing this, surprised not discussed more  You as the buyer is paying for the agents commission one way or another , either by a higher sales price , or by cutting a check to your agent . 

@Maynhia Stott If your focus on high interest rate is solely for getting a higher rate of return on redemption, then I think you would want to emphasize penalty states because many of the states you mentioned, like Maryland, would only yield that high interest after the 12th month.

Even with multiple units, with current interest rates and a competitive market (prices have continued to rise even with higher interest rates) think the Madison market is a stronger long term ownership strategy, where the bulk of your return will come when you sell from appreciation in rents and property value. 

This higher rental demand drives up rental rates.

He enjoys the cash flow, has a good tenant screening process, and is OK with the tenant headaches that are going to occur.I would put it higher on the reward side of the profile, but it also is a higher amount of work and harder to scale endeavor.

The greatest profits are in properties that can be repositioned to a higher and better use, or appreciate the highest over time, or will throw off a TRUE cash flow of 20% per annum on total investment (cash + debt + capital investment). 

780 or higher should get you the best rates/terms available, no difference than 820 score.

These properties today can throw cash like crazy, but you'll be dealing with a certain kind of tenant and depending on your tenant screening could be looking at higher costs due to poorer tenants.

You can refinance it into a conventional loan and that helps avoid the higher down payment.FHA also offers more wiggle room when it comes to DTI debt to income ratios and reserves requirements. 

There are two types of borrowers that fail at a much, much higher statistical rate than any other...1) borrowers with little experience, and 2) those putting nothing or very little down.