It's an overlay...the guidelines are minimum standards for a conventional loan, it doesn't mean that a lender has to give you those loan terms.

Our charge is 25% of gross monthly rents after the cleaning fees and Waivo damage insurance fee; both of which is just a pass-through.

@Jack LittleThere are standard templates from Fannie Mae but I would have an attorney draft these documentsThey can be held (the lender) through a deferred retirement account but make sure you are using a third party servicer to collect payments

I am looking to purchase a property in 35749 zip code in alabama, am trying to calculate property taxes and insurance, I got some estimates from my realtor ,just want to do my due diligence and check them, am using the below to calculate the property taxes, it shows .45% and do you have any contacts I can call to get a property insurance quote?

Rents have not kept pace with prices, interest rates, property taxes, and insurance hikes in most growing markets.

If you move there, get owners home insurance, utilities in your name, not a landlord policy, move all your billing, medical, voting, car registration, etc etc there you should be able to prove you live there 6 months.

Just to be clear conventional loan guidelines are just the standards set by FNMA to buy loans that have been originated, they don't obligate anyone to actually extend those loan terms to borrowers.

To ensure that the title is insurable, the seller will need to take necessary actions, at their own expense, to deliver insurable title.

We have a good amount of equity in our current home, we have saved a good nest egg in standard investments (that we could tap into), and we do have $100k + in cash. 

What you need to do to protect yourself is carry adequate insurance and fully disclose to your insurance company everything that you're doing to generate money at the property.