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

Borrowers can acquire a primary residence from up to 1-4 units for as low as 5% with conventional, as the regulation was approved last year of November 2023.

Buy a new primary home and rent out your existing home.

I agree that Class C is definitely not the way to go unless you are just going to flip the properties to home buyers looking for a primary residence.

We had success with listing on Turbotenant as a 1 bed 1 bath rental with an explanation it is a room in a house for rent. 

I was going to use this home as my primary residence and do the 203K loan to build a ton of equity How did you find this deal and how did you negotiate it?

Without having to analyze the numbers I was able to respond with a reasonable explanation of why an investor would not be able to pay as much as owner occupant for his house.I guess people who eschew the 1% rule would go back and spend an hour putting together a detailed analysis to answer that question.

And why is it that every single home - whether its a rental cabin or primary residence - doesn't have to have a sprinkler system?

HELOC on your primary?

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