Conventional also has a tighter DTI requirement, and higher reserve requirement.

@Joseph McElmeelHey JosephThe fha has a lending requirement for fourplexes that could cause you issues and that is the self sufficiency test.

I would think of this problem differently: I might encourage them to explore ADUs... this would give them an additional stream of income and would likely only require a relatively small chunk of money in their savings (relative to the total cost).If they could partner with someone that has experience building and/or flipping (to qualify for the construction loan), then cash them out with a 30-yr DSCR loan (and use that as the builder's profit), then they could rent the property and enjoy the cash-flow.

It requires more effort but can significantly accelerate your portfolio growth.Down Payment Assistance Programs: If upfront cash is a concern, look into down payment assistance programs.

And by turnkey, either going through a turnkey provider company, or if you're in Minneapolis, I'd imagine there are local cash flow options, so you could just focus on finding a property that's in good turnkey condition so it requires less work.

I can tell you that Freddie Mac and Fannie Mae can require bldgs to be in "single asset entities" .... 

What are the requirements lenders look for in this scenario?

Purchase price: $264,000 Cash invested: $30,000 Used a conventional loan and "lived in" the property until "unforseen events" required me to move out.

If this situation harms you, it may be worth selling and trading for something that produces less return but requires less work.

I am aiming for a home between 150-250k, which i can afford if all hell breaks loose, at a 5% conventional 30 year term loan (unless a lender or someone else can suggest me a better loan) My question is what are the minimum requirements for obtaining such a home (capital wise, credit score wise, salary wise) Who can i specifically talk to for these numbers and help me understand tenant demand, areas, and more specific information about my market?