It may be there is another guideline that is shifting the math on the loan, or that the secondary market has no appetite currently for the 5% DP loans.

It also doesn't mean that just because FNMA could buy a loan under those terms that they are actively purchasing those loans...which means loan originators may have no appetite to originate those loans. 

It does seem that higher rates are reducing demand for loans, which is driving up home inventory which could - I stress could - suppress home price growth.

It's up to you and your risk appetite.

If it is bad enough that can suppress rental rates but a family looking for $2000/month rental is not going to consider $3000/month units.

Storm pond, storm sewer, fire hydrant, fire suppression systems, fire walls, electric metering and voltage (3phase???)

The last condo I had was in Bozeman MT and swore I would never do that again, but I’ve learned from that experience and my appetite has changed. 

You need to have the right risk appetite for that kind of places. 

Seems like appetite for those loans has disappeared with higher rates (higher risk).

I have a clear goal of trying to hit $3k / mo in net cash flow and I have a moderate-to-high risk appetite.