Hi Brandon,I work with a few investor groups that target SFR’s, and we’ve bought multiple homes from Opendoor recently.Majority of the homes are listed on the MLS and go through the traditional negotiation process.

On an investment property with traditional financing, the least you can get away with is 15% assuming it’s a single family.

Though I personally would rent a house on piers over a traditional home assuming everything else is comparable.  

However if you are going to park your funds and have debt on the property a traditional bank will require it to cash flow at 1.2%.  

They have many of the tax benefits of traditional RE transactions including being common to use accelerated depreciation to offset the gains from the exit of previous syndication.  

I ran around doing open houses and wasting a lot of time trying to chase "traditional" business.

Non-QM loans allow you to qualify based on other alternatives instead of the traditional DTI method ((DSCR for example when the monthly rents > monthly PITI (principal, interest, taxes, insurance) = you qualify)).

From a PM standpoint renting by the room is going to be quite a bit more work than renting traditional apartments.

I would run the numbers compared to a more traditional hard money loan (a couple of points and a little less leverage) to compare, you may be surprised that you might end up paying more even though there are no points

@Kyle Jones the traditional routes, or "conventional" routes, are the ways that we want to go.