Here in TN brokerages regularly hold EM deposits; I have a dedicated account for such deposits myself, by law, even though I don't actively broker RE but just maintain my brokerage for the PM side of things.

I am house hacking my unit and is there any difference in those processes as opposed to a regular rental property?

Known for earthquakes or regular settling?

Sometimes too portfolios allow you to include lower valued properties that might not be eligible for regular DSCR lending. 

The only reason a property owner would agree to rental arbitrage is if they see it as advantageous to them over taking a regular tenant.

I have seen some realtors who have used marketing targeted to 1031 investors as part of their regular outreach. 

I do get regular emails from their group - but the ROI on most properties that they have sent recently has bene around 8-10%, not the 'at least 12%' that CM promises in his videos.

Even if it takes longer to pay off, having a steady, reliable tenant might actually be less stressful than managing an STR.FYI - consider starting with a regular rental but structuring it as a 6-12 month lease.

The process is still much the same as getting any other kind of financing on a regular home or foreclosure.

@Sidra Amir I work in a group home that regularly has a pest company come in and inspect for bed bugs with a bed bug detection dog.