@Iris Olivas Most local banks/credit unions can do this deal with lower fees and potentially rates than brokers.

This kind of govt nosiness and overreach is why I initially decided against the financial planning industry before starting in credit. you can thank 2008 and all the fraud that went on for that.

im in Orange County CA and there is a huge market here for room by room rentals here. i've been doing this for quite some time (over a decade now), and it certainly has its pro's and cons. my advice if you go about this is make sure you do proper vetting before moving someone in... not only for financials/ credit-worthiness, but also for temperament and expectations in a co-living space. we ask a lot of questions like "how do you handle conflict?"

It (2%) technically would be coming from the seller by reducing the 5% to 3% and then you get a closing cost credit for 2% at COE.

Keep your payment at no more than 35% of your income and minimize your credit card and auto debt.  

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

I’ve bought some houses with 0% interest for a year credit cards and a few with consumer lines of credit from banks.

I am a real estate broker and property manager based in Clarksville, TN and I specialize in working with investors.

Find an architect who specializes in this type of work, and who is very familiar  with the building department

We have an investor running a special next month on 10% down second homes where the cost is 3-4 points cheaper than it would be, on a normal Fannie/Freddie loan.