I'm looking to start off in areas with lower costs coming in, preferably under $100k single families but definitely under $200k. 

The reality is many lower rate offers have a higher price or are $hit properties, but not all.If you are paying extra for owner financing make sure that the discount rate easily justifies the purchase price.  

In terms of the second scenario, the upside I see is the option to get a different kind of loan (say, FHA with a lower down payment and other assistance programs for K-12 educators like me) since I'd be getting a new primary residence instead of a second home.

By year two, he refinanced to lower his rate and dramatically increased his cash flow.

You’re able to learn the basics of a real estate investment with lower risk and build equity at the same time.

If rates drop in the future, refinancing again could lower your payment, but it’s good to make sure the numbers work now just in case.

It is in a northern MI Downtown area (opp zone) in a county seat with 2 hospitals, had it re-zoned to mixed use, and is considered blighted which makes it eligible for MEDC funding of up to 50% of project cost.It is 8k sqft (4,000 each level) with the lower level being a walkout (top level is street level with sloped drive down to the rear of the building).

As an example, although we are “hard money” lenders we seek lower rate long term financing for our real property investments.  

So, you might only have 3-4 outlets in the room when you are done instead of 5 but you have upgraded the electrical in the room at a lower price point.

Obviously right now is a lower valuation, but there is always ways to take advantage of the currency spread.