For the guest it is easy- no need to fill out an application, pay for a credit check.   

My credit score is 720+ and a down payment for an average property in Louisville, KY shouldn’t be a problem. 

It's a breeze, the cash on cash return, while low in absolute terms, is crazy high (3% down + seller credits).

If your finances and credit are in good standing, it sounds like conventional would likely be the best way to go, if it’s your first rental property.

Other tips I might consider could be Expanding your search area: Look beyond immediate local markets and explore options in up-and-coming areas or cities with diverse economies.

I have perfect credit 20% cash down on 400k purchase.

I was also happy with that as conventional loans at the time were at about 6%.Lowest rates possible will be in relationships with private money lenders.Lowest rates in the public market will be in the form of a conventional loan.Next up you have commercial mortgages that are usually slightly higher than conventional loans but don't have as strict of loan requirements as conventional loans do.Usually a bit higher in rates are DSCR (debt service credit ratio) lenders.

Hi Nader, thank you for the tip.

@Seena NassiriI'm based in the Bay Area with a lot of clients that own rental properties out-of-state so I think I can answer this question with creditability. 

Id love to hear anyone else's experience using a VA Loan for a small multifamily property (2-3 units) and any tips on what to avoid or make sure to do!