That’s why you get a discounted interest rate and a lower downpayment, because owne occupant properties are low risk. 

a lot of people will poo poo this, but I also live in a market where cash flow is low, property taxes are high and properties are expensive (which is a relative term).

There are some very aggressive investors that refi into interest only products to free up even more cash in the short term - this can be much more risky though, so not recommended if you are not very experienced and have large reserves.

Your initial monthly payments will be very low and then build up as the project gets to the end.

@Bonnie Low this is great info and exactly what I was looking for.

House hacking is a great way to build wealth while keeping your living costs low.

Low down payments but I can still use them as leverage.

Option 3- If they have qualified for FHA; counter the offer to see if they can qualify for low downpayment conventional loan

It’s a low-risk entry into real estate with built-in cash flow potential.

With a purchase price of $250k, your rent is WAY too low!