We financed this deal using a conventional loan, and taking portions of my 401K out to make the down payment and stage the house for STR and MTR.

Conventional financing with bank How did you add value to the deal?

Regular Conventional? 

Conventional mortgages have no opportunity. 

From the tenant's pov, I don't see why a conventional lender would have issues with a tenant buying the property as a primary that they've been living in.Cheers!

., as a licensed real estate agent who focuses predominantly on rent-by-the-room acquisition, the majority of my clients finance their deals either conventional, DSCR, or cash.

If so conventional will be better because FHA/Conv guidelines are the wheel house typically of mortgage broker and some times banker (synonymous names but they all do and sell the same product).Credit unions can sometimes do Fannie Freddie/conventional FHA too but generally aren’t that great at them.

For an owner-occupied property with 5% down, consider a conventional loan with a renovation option like Fannie Mae  or Freddie Mac.

Should I assume the in-place IHDA loan at acquisition or close with a conventional loan and try to get IHDA loans/grants/credits later if/when I decide to keep affordable?  

I’d be looking to purchase with a conventional loan, 25% down, at about 7.99% rate currently.