I have some perspective on this.For me I see this as the market finally catching up with the excess inventory created by residences moving out of OHIO and that area to the south..

We borrow from our commercial banks and put in the loan docs if we have  another serious down turn we can take whatever standing inventory we have and term it out as rentals for 5 years ( so some dooms day protection).

And in a highly competitive business that distressed RE is the inventory moves to fast one needs to be able to look at a deal and in 5 minutes decide.. at least to make and offer

@Sarmad Abbas  Most conventional lenders don't want the downpayment to be borrowed.  

That’s not really the case and recognize that if someone can get conventional financing that is always the best thing to do.

I am looking to buy a house hack in Wichita Kansas, but the inventory is so LOW, and nothing seems to make sense.

I also tried setting up more conventional management services for rent collection and got a huge amount of pushback that the tenants didn’t know the App and didn’t want to put personal information or bank account/credit cards into some App they’d never heard of.

To answer your question about inventory:1.

An FHA loan or conventional would be a good loan product and can use the existing rents to help qualify. 

For my strategy there is a lot more to it, as well as my own limitations on conventional loans.