It has been a great rental with a fixed conventional mortgage rate, generating cash flow from day 1 and already gaining equity due to the increased value.

I don't intend to work the cherries (the current owner leases them), but because of them, I have been told that it qualifies as a farm and I cannot get a conventional mortgage.

I may switch to a 5% conventional loan to avoid the risk of failing the self-sufficiency test.

Only ResiClub readers were invited to participate”To me this is like asking people at a political party convention what their opinion is on their candidate.

With a 20% down payment conventional at 20yr am I can barely break even with just PITI right now.

@Susan Butler If that is the case why not consider some conventional financing?

5% down conventional financing.

Also Fannie Mae and Freddie Mac just released a 5% down conventional on an owner occupant as well hence they are out there, however just be prepapred to live in the property for a year.

Or, buying a Duplex and renting one side out then renting the other rooms out in the side I would live in.I have spoken with two lenders and both have given me pre-approval letters for up to 270k purchase price, with 15k down payment, conventional fixed rate loan, 30 year term.

Congrats on your graduation  Rolando.In my opinion you should go for a conventional FHA  than a 203k loans  because 203k has extra fees  of your 3.5%  they work kind of like hard money lenders the only think is that the rate is lower than a hard money lender but higher than a conventional FHA  I just bought my first house here in Oakland California using 203k loan which works for me because I had  to renovate the entire house $125k of renovation with a rate of 7.6 and is been 8 months and I am ready to refinance to Lower my payments and the rate .In my opinion is worth it 203k loan if your repairs are over 100k  for all the benefits that you get with the city and sewer company.