They proved to be a low risk, low cash requirement to get some traction. 

There is a story to every pocket of every neighborhood that locals will know, but you may not, if investing out of state or in a market you don't know.

Personally at the spot I am in now I would probably pay cash, as I don't like debt and interest rates aren't that low. 

Talk to some of the Realtors in the city and ask them to define where the neighborhoods are and which neighborhoods they think are best.

If it were 3 investors for example, and 2 have low credit scores, you'd want to have them at 10%, 10%, and you at 80% so your higher scores can be used.  

Next is probably his book on Investing with No and Low Money Down.

Quote from @Donald Hatter: Pros:- Builders have many homes to sell at one time so it is easier to negotiate a better deal than with a home owner in the same neighborhood who is trying to sell their primary residence - Buyers bust out of deals all the time and builders don't like holding completed homes- Lower maintenance which leads to easier property management expenses.  

Ramsha - most of the regulation for a STR is controlled by the neighborhood HOA.

Borrowers can acquire a primary residence from up to 1-4 units for as low as 5% with conventional, as the regulation was approved last year of November 2023.

Maybe your situation is different and if you don’t feel comfortable in the neighborhood then this may be a moot point anyway.As for FHA, my understanding is that you must intend to live in the house for a year  it sounds like you did intend to, but due to unexpected circumstances- lead exposure and unexpected unsafe neighborhood- you have to move.