Also, the banks that did approve me told me that they could only use the rental income from the other units (75% of it) for an FHA loan, not a conventional with 5% down (which was my goal to avoid upfront PMI and have it automatically drop off at 78% LTV).

Then you can do a 1031 exchange or sell it at a lower tax rate. 

Just click on thelittle black triangle to the left of the name andrew thanks for that tip I was wondering how you get that info to drop down !!!!

Face the fear--get yourself in front of more sellers.Little by little, your presentations will become more comfortable, and your success rate will increase.  

Are there lenders that will lend on the product at competitive rates that are similar to current 30 yr sfh amortization?

The headache of playing peacemaker between 3-5 unrelated tenants doesn't sound worth the premium management fee; not to mention rent by room generally brings in lower quality tenants which require significant more management.With that said, higher rates are pushing investors toward rent by room simply because it's the only option for cash flow (at least in Denver) which is why I have so many folks reaching out.If you currently have rent by room investments or perhaps you're a PM currently offering rent by room, I'd love to hear your feedback and any advice you may have. 

Rates and fees are higher though.

I have a builder in San Antonio that offers a 4.75% interest rate on their duplex's.

Hey @Rick Dane, I second @John Underwood suggestion.Insurance rates are all over the place in FL right now.

I mention this as I have seen some people want to sue companies because they were a sponsored affiliate on a website…Regarding the original post- expect 10-12% (I think latest I saw is avg is 11.5%) rate plus atleast one point for a 12 month loan.Bigger companies may take longer for approval and can be more flexible usually in down payment amounts.