Recognize any cash you add to down payment is increasing your cash flow by the rate of the loan.  

If you're already in a secure financial position, leveraging your equity could be a smart strategy.

The building next to yours looks much nicer and has THREE security vehicles parked in front.

HUD 4000.1 (I believe) is the latest HUD handbook and it goes over all requirements for originating the loan, including but not limited to occupancy requirements and exemptions.FHA occupancy : "At least one Borrower must occupy the Property within 60 Days of signing the security instrument and intend to continue occupancy for at least one year."

Good luck with getting this tenant to accept higher rent, because you've trained your tenant to think they have a "mortgage payment" that never goes up!

She can set up payments to be paid on the 1st of the month and no one is driving 24/7. 

I borrowed the $25k down payment from my parents at 8% and got the deal done.

This could help secure a higher LTV while you build STR rental history.

Generally, lenders will require you to have a substantial down payment.

Prior to investing, I asked my coordinator if the loan was secured and she said yes, it was secured by their property portfolio.