I've got an FHA grant that allows borrowers to purchase a duplex as a primary.

to your point, if you save up so that you're in a strong financial position, house hack a solid duplex in a decent neighborhood, make smart decisions, and hold it indefinitely, you'll be fine.conversely, if you have $0 and somehow start out with a risky flip, or borrow $20K and spend it all on a magic mentoring program, or buy a terrible property in a neighborhood you've never been to, you may not be fine.

If I'm borrowing at 7.5%, is that value destruction (unless appreciation is really good)?

They do follow the traditional process where disclosures are sent out to the borrower.

You'll find much greater difference in $$$$$ by refining your location/rehab/vacancy strategies instead of worrying about "how much it costs to borrow money" in this environment.Nearly all of my clients are more concerned with a simple and headache-free funding process, than the "lowest rate."

FYI, most of my CFO clients borrow from HMLs that will lend up to 100% of their rehab costs. 

I remember one of them telling me he just sold his business for many millions and was curious and 30k was nothing to him.. but you take those who have to borrow the 30 k and well that can be very bad for them if they dont do anything with the course.

I called them and we spoke about being a borrower and about being loan broker.

If you don't have the money, then borrow the money from someone who you will pay them for use of their capital. 

And buyers can’t borrow $1 more than 75-80% of the comped value of similar non-STR homes.