It is a financed offer with a conventional mortgage, and includes a 30-day financing contingency. 

A better option though when you are young is to buy low down house hack but you need a salary to get conventional mortgages.

Money is expensive to borrow, and prices are high, and there is a lack of inventory, and there is little expected to change in the next year.The take away from that might be that you need to realize that real estate is a long term, cyclic 'game'.  

I'm in the position to apply(depending on lender DTI requirement) for conventional financing through the builder at <6% interest rate in this current market.

Conventional Loan. 30 years.

If you like the house and the area and want to live there and its habitable, go ahead and try to get a plain vanilla conventional loan from the local credit union and mortgage broker. 

I want to house hack using a 5% conventional loan.

I'm finishing up a light rehab now; I'm selling a property that didn't work out the way that I thought it would; and I'm trying to qualify an off market lead I've been working for over a year.But with that said - it actually IS a challenging time to invest, with rates and prices high; low inventory; tremendous competition for deals both on and off market; contractors booked up; and more.everything you listed as their objections are VALID. 

If you're applying for a Conventional/FHA/VA/ or USDA loan, then they will do a "global cash flow" where they take into account your PITI (Principal + Interest + Taxes + Insurance (hazard and flood) on all properties (second mortgages included), HOA payments, car payments, student loan payments, credit card payments, and installment loan payments in the numerator and your gross income in the denominator.

The market is on the move with a median sold price of $576,500 and a 5.41 Months Supply of inventory.