There are definitely pros and cons to each so I figured I would just lay out a few benefits and personal thoughts: Small banks/brokerages:Pros:- Some regional knowledge of the market- Possibility of more creative lending guidelines with bank specific programs- Sometimes they have competitive rates for their areaCons: - weak balance sheet (more strict on some guidelines, no wiggle room, inability to be flexible or grant exceptions because they cannot afford to hold less than perfect loans)- Can't scale with clients to different markets- Usually limits exposure to individual investors (they don't want one investor to be too big of a portion of their balance sheet)- Lack of experience with multiple solutions (tend to have 2 or 3 loan products they sell and are too niche to provide tailored solutions)Large banks/brokerages:Pros:- Large compliance departments that understand individual market guidelines (typically each state has specific lending guidelines that augment the national baseline)- Ability to scale into multiple markets with same lender (licensed in many states)- Impossible for individual investors to "outgrow" a large bank's balance sheet (not concerned with one investor's concentration)- More lending solutions available for different scenarios- Often comparable or better rates given the game is volume basedCons:- Can be more difficult to get fast responses if the bank/brokerage does not have good follow up systems in place (or if the underwriting/processing staff gets overwhelmed)- Bad large banks can feel less like a relationship and more like a cog in a factory (less personal)Overall, I have worked from both and worked with both as a loan officer, branch manager, and as an investor/client myself. 

My question is what are the types of homes that attract long term tenants in this market?

Yes, while there is debate about the material status, I would lean towards MFS unless there is a tangible benefit for filing separately. 

So, I'm left questioning what benefits there are to the 2/1 buydown that would make it a recommended option.I'm thinking that if I skip the 2/1 buydown, the cash to close would be lower, meaning I'd need to put in less of my own money upfront, which seems like a better option to me.

But also, I'm being super vulnerable as this is quite painful but I'm also hoping that someone else might benefit from reading this and learn from my experience.  1.

I don't mean to be ungrateful, but this is really no benefit or bonus to a Pro Member, it's just a source of frustration and a waste of my valuable and limited time. 

How many benefits && how many CAN benefit with hearing each other out, 

LOC = short term money. 

I'd cut my losses and run or just rent out long term. 

If you haven't already, read "Short-Term Rental Long-Term Wealth" by Avery Carl.