Specifically, a HH can substantially lower your living expenses, while increasing your income.

:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+, zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680, some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.

Instead of a 2-year balloon payment, you could try to negotiate a longer term, such as 5 or 10 years, to give yourself more time to generate income from the property before needing to pay off the remaining balance.Additionally, you could also propose a lower down payment amount to the owner.

I would think less listings bud increased demand would lead to higher prices, not lower prices.

These properties were exchange properties from a 1031 transaction several years ago.

I have been approached through an agent with a possible lease to buy proposal but need guidance in how to negotiate such a transaction.

She stated that Fannie Mae capped this to a lower than 75% LTV.

I would be willing to put 20% down. would this typically result in a Lower final cost since the builder doesn’t have to put up any of the initial investment or carry the loan for the build ? 

This lowers the overall cost of the project by lowering the tax owed dollar for dollar.What are the requirements to qualify for this credit?

Keeping an 8 bedroom SFR I believe would also be hard to rent to a long term tenant as the demand for that many bedrooms would be lower as I would image as most people do not need that many bedrooms.