The 90% they are paying you back is probably 1/3 of what they're actually making by you committing to a deal.

By that I mean community banks.

I got your name to show up by 'Quote'ing you and then removing all the text from your quote.

Like @Collin Hays said, it is being driven more by neighbors tired of poor STR owners not keeping things sorted.We only look for places in vacation areas with a long history of owner driven STRs vs big cities and the like.

The loan is with you, not with your tenant, so none of that means anything to them - in fact because you live in one unit and it's under 4, if you were self-managing you don't even have to abide by fair housing laws (at least on the federal level). 

Just cause the market is "red-hot" as you've said, doesn't mean people will over pay by 33%. 

@Chinku Chinku the rich get rich by making their money work for them.They borrow at one rate, to invest in something that returns a higher rate - they profit on the difference.Only you can evaluate your risk tolerence though.

And what is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"?

Read Main Street Millionaire by Codie Sanchez.

Well you'd actually be netting more in the long run by doing so compared to putting it towards the home.