Federal loan interest rates currently sit at 3.73%, roughly the same rate as a 30-year mortgage, but is 0% until May 2022.Some factors I've considered that make this taking this $4,000 attractive:- I may be able to obtain lower interest rates with a larger down payment, offsetting student debt interest- Avoiding PMI by making a down payment over 20%- Booming housing market in my city with consistently increasing equity- Living several years in the home leaving time to grow equity, potentially making much more than I owe in student debt While all this may be legal, my biggest question is this - does this sound like a smart investment strategy?

If it produces $96k in rental income now with the the upside at maybe $110K(approx unless I add an ADU)I am wondering if I should indeed look at cashing out and buying a RCFE that will still have appreciation upside as well as income potential. 

As of Jan 2022 (12 months later), I am considering moving back home to CA and renting out my primary residence in AZ and turning it into an investment/income producing property.

Get my real estate license and go work for an agency on a team under a top producing agent.

you have to rent for 6-7 years to even out the taxes paid when you go to sell (doesn't really account for increased rental rate over the years), but you'd STILL have the appreciation profit on the home, and you could have also taken a cash out refi on the home at some point if needed to put into other profit-producing investments (I do realize the refi impacts the overall model of course). 

If they can they will advertise that normally as it will attract potentially more buyers.

You can't just be new and say I can do everything because it's not just about producing leads, you still have to know how to close them and have the resources to do it.

The fact that REI produces both rental income while also appreciating.

That is an attractive building.

This situation doesn't seem like it would produce good, long term tenants.