We think we can break even with a conventional sale but have no idea.

Start small with duplexes or triplexes, analyze deals carefully, and build a team of local experts.

**WHY SHOULD YOU CARE?

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

Since you'll be owner-occupying, take advantage of low down payment loans like FHA (3.5%), Conventional (5%), VA (0%), or a 203k loan for renovations.

That gives you time to get organized and established for more conventional financing. 

The roof is 5-7 years old and the foundation was updated 5-7 years ago so the big stuff is already taken care of.

There's also the conventional loan program CHOICERenovation by Freddie Mac.

I've heard there's a good chance the mortgage company won't care as long as the payments continue to be made on time but I still want to protect myself just in case.

Hope is a bad strategy.The only on market strategy that I think can work is paying cash/line of credit/hard money for a property that does not qualify for conventional financing.