@Luke RentzFirst I have never done this but have heard alot about it and have some questions as well.I have heard that for many banks they don't want to own property they want payments so for most of them if they are getting paid they are unlikely to cause a stink and may never even know a property has changed hands.I understand with rising interest rates they may try and find these to get rid of the lower interest rate loans?

I would agree and recommend to FHA into a duplex, rent out one side to substantially lower living costs, generate equity, and build cash flow.I’d recommend listening to Biggerpockets podcasts, there’s also a great selection of books available that help break down each aspect of Real Estate investing.Then honestly, just look and study the area that you are interested in starting out in to get a feel for everything and think about each property you see. 

Gap funding can help cover the difference between your available funds and the down payment required by traditional lenders, but it often involves higher interest rates and adds complexity to the process.Finding off-market deals can be challenging, especially for beginners, and higher interest rates may mean lower rental income.

Many investors from California are investing in the mid-west because of the yearly cash returns making more sense in these lower priced markets.

Yes they are older and have been at it for years; however, their cashflow is significant and with low amount of doors (lower headaches), which you would have to have significantly more doors to match their net worth and cashflow (appreciation as well). 

I hate to say it, but every time I've come up against someone on the other side of the transaction that did not have a GOOD agent on their side...I basically got whatever I wanted.

There's really nothing unique to a short sale's distress, you just need a third party to approve of the transaction... 

-How much does it cost for me to lower my rate down by 0.25%Any suggestions is much appreciated.

This mainly applies to 1-4 Unit residential transactions.

I think it’s really just a personal decision to wait and see if rates will lower.