Rates for seller financing are typically higher than conventional mortgage rates to compensate for the increased risk.

So it's a conventional owner occupied loan with 20% down.

STR (if more than 50/100 miles from your home, or at a destination like lake house or beach house), allows you to put 10% down vs 15/20% down for conventional financing. 

You would have to refi your FHA into conventional on the one you live in now, which would probably work and you could be at a better rate also.

In the ten-year period beginning with Q2 2014, the Downtown submarket has experienced the greatest introduction of new inventory, 19,373 units, amounting to 21.7% of all new market rate rentals added to the market.Asking and Effective RentAfter finishing April with no change, asking rents climbed by 0.3% to $2,381.

@Gabriel Graumann actually this is a multi unit property where there are 2 parcels (2 building adjacent to each other 4 units on both sides).we are working with a lender who has agreed to do a conventional loan as it has only 4 units on each side (so 2 applications) - lets see how things go.

I could do an all cash, but would prefer to do a conventional loan.

Either way right now with inventory so low patience will also be key in waiting for the right deal to jump on.  

The goal is to get the property or borrower prepared for conventional financing. 

Financing options include conventional loans, FHA loans, portfolio lenders, and private financing.