Why wouldn't you just do a normal loan at 3.5% down for owner occupancy and 4% interest for 30 years? 

I always say, buy as many units as you can as an owner occupant to get preferred financing terms.

It is incredibly unlikely that this will come up, unless you attempt to get another owner occupant mortgage within the next 12 months.If it does come up for some reason, you will have to document the portion I put in bold.

It's also owner occupant for first 20 days so that's helpful in my favor, also it's a Fannie May homepath, not sure if that would change anything.

If there's any owner occupancy requirements (must reside there for 1 full year, etc) be sure to fulfill that obligation but beyond that you should be fine.

And on SFH the overwhelming majority of buyers are owner occupants and either don't know or care about Cap Rates.That said here are some examples of actual purchases in Pennsylvania:Purchase Price              Monthly Rent            Rule            Previous Sale       Neighborhood$32,000                          $950                        2.96             $56,000               C$36,000                          $895                        2.4               $108,000             B$34,000                          $1,250                      3.6               $95,000              B$30,000                          $2,050                      6.8               $250,000            AThe key to getting higher returns is not D neighborhoods, it is buying at bargain prices in better neighborhoods.

Renovation takes time, hurts occupancy, and if certain things (like kitchen cabinets) are in the middle of their life there's no need to look a gift horse in the mouth. 

They have some strict rules you need to follow on owner occupancy for FHA loans, and how long they need to be occupied by the owner prior to making the house a rental.

(Vacation home, owner occupant, buying for vacation rental) Best of luck.

I will have to go nontraditional lending if I keep the property and purchase another rental property as a owner/occupant and/or purchase two new ones at 50% the cost of current house.