However your state law may exempt you if you follow strict rules/guidelines.

All states have their own rules. 

Use 15k from the loan to make some improvements in the new house. 4.

But these rules are specific state to state and sometimes even county to county.  

Looks to me that prices are a bit high right now not seeing very much that even hit the 1% rule.

My why is because I love my small town and I want to help improve the community.

While they more than fit my main two criteria for tenants, namely pay the rent on time and no concerns about damaging the property, they are becoming increasingly demanding about improvements to the house and yard. 

The city is also working on another ordinance that will make it easier for tenants to report  substandard conditions to the city and for the city to be able to require the landlord to improve the conditions, or risk having the property boarded up.

First thing I do is I know in my area, because of higher property taxes, that the property needs to be above the 1% rule to even consider it, so that really helps me narrow down my search.

Also, I don't know of the specific "rules" about loans that one bank has vs. another because they always seem to vary so much and change so frequently.