Of course the rate is higher with 15% down, but it helps investors get that property secured with less out of pocket.Happy to help if there's anything you need.

As to your point about confusion in the future, it's our policy to leave the conversation and thread open and available for anyone to read, they can gather all of the information and make an informed decision for themselves based on ALL the information provided.

million in addition to their investors (who expect a reasonable rate of return) by keeping the rental rates at a fraction of the market rate?

Just like the asking price, just because the owner suggests one interest rate or term doesn't mean you can't offer something different. 

A couple tips--Always best to house hack small multis when you are moving around from base to base. 

Will interest rates go up or down when Freddie/Fanny are 100% privatized?   

I agree, it could be possible but I have yet to see a deal that really works when the borrower is borrowing 100% financing on a deal as the lender is going to have much higher rates and default rates.

This, in turn, allows for higher rental rates or quicker sales, directly impacting the ROI.I could remember when an investor purchased an old, three-story commercial building at  a bustling downtown area.

Consider this scenario:- You buy a $400,000 duplex with 5% down ($20,000) at a 6.5% interest rate.- Your monthly mortgage payment (PITI) is about $2,800.- You rent out the other unit for $1,800 and maybe a spare bedroom for $500.- Total rental income: $2,300.- You’re still responsible for a $500 gap each month.Add in maintenance, unexpected expenses, and vacancies, and your costs can climb even higher.

The goal is not about accumulating money based on the rate of return but to continue to stack and grow the cash flow.