You might’ve rate-shopped a bit early, but it’s not a deal-breaker.

Online platforms like Zillow, PropStream, and Auction.com are worth exploring, and don’t forget to check out local real estate groups for deals and partnerships.Since you’re in Racine, the Rental Property Association of Wisconsin and Milwaukee REIA are great resources for networking, finding contractors, and learning about funding opportunities.

Quote from @Jaikevis Reams: In order to put a property under contract I need to provide proof of funds I know that I can get that from a hard money lender but I don’t meet there criteria for a loan approval what should I do? 

Then can decide for whatever reason not to fund the loan and keep that engagement fee.

In 1972 the 30 year mortgage interest rate was 7%.

In this case, your monthly payment with 20% down will have a good MARKET rate if your DTI works with a much lower month payment and no mortgage insurance(MI).

Do the calculations factor in default rates?

If you want to play a passive role, a real estate syndication or debt fund could be a great way to go.

I also want to learn how to fund my first rental property

Seller finance the property- ask for an up front, non-refundable down payment of $XXX (which could be used as his primary residence down payment), payments of $X over X years at X interest rate with a balloon payment in X years2.