You can acquire your a primary residence from up to 1-4 units for as low as 5% with conventional or 3.5% FHA with a few exceptions.

We are currently buying blend and extends with tenants having low years remaining on the guaranteed primary lease term.Closed on one last month at 11 cap rate.

Your primary issue is not what the PM is charging but the underwriting that led to this purchase.  

These loans allow buyers to purchase a property “AS IS, WHERE IS”.Renovation loans are available in 30, 20- and 15-year fixed rate terms and can be used to purchase owner occupied, second home and investment properties.By time the renovations are completed, the home needs to be in move-in, live-in condition and conceptually ready to be resold without repair issues.Other Important Items to Know about “Conventional” Renovation LoansMaximum – Minimum Purchase/Upgrade Amounts:Maximum: Limited to 75% of the “after improved” valueOccupancy: Primary, Second Homes, Investment PropertiesUnits: 1-4 unit propertiesRenovation Term:The renovation term for this program is a maximum of 180 days.The Borrower(s) is responsible for the work being completed within the escrow period.

Quote from @Kevin Zmick: When a property doesn't rent, there are two primary reasons: the price is too high or your marketing isn't reaching the right audience.If your REALTOR listed it in the MLS, then it's probably syndicated to the best websites and you're casting a wide net.

Primary residence loans are less risky than investment property loans, which is why they have more favorable terms than investment property loans.

Most of the time, unless you bought many years ago or got some other crazy deal, primary homes don't make good rentals because you paid too much for them to ever really make any money.

When did you get into my primary residence???

I bought from a primary homeowner in Indianapolis metro area who took really good care of this home (I did live in this house and rented it out when I moved back to California) and from a flipper in Indy more recently.As far as primary homeowners, they can range from taking really good care of the house to someone who has a lot of deferred maintenance - I renovated a local property that had a lot of issues.  

Currently have a local LTR Condo in CA and Primary SFH in CA.