Correct, conventional financing now allows for 5% on a 2-4 unit property as long as you occupy a unit.

What you want is doable, outlining your contract agreement in a non-binding LOI with the owner, for instance, referencing what you speak of, rent abatement, TI allowances if needed, due diligence time frame, and general lease terms needed.

The new loan at a 5% interest rate would then pay off the seller's remaining balance, effectively transitioning your financing without additional down payment.It's also worth noting that some lenders might allow a "cash-out" refinance, where you could potentially take out more than the existing loan balance, given enough equity in the property, which could be used for further investments or improvements.

So essentially question number #2 is only valid if question #1 is not allowed.

Would they have to go with a non warrantable product or is there some sort of rule that allows it be a new condo building and waive some of the underwriting requirements?

This allows us to maximize returns.Strong Growth - The Southeast, especially cities like Huntsville, Atlanta, and throughout the Carolinas, are experiencing rapid population and job growth.

So does the LOI contain a clause allowing the buyer to back out if the financials are garbage?

There's plenty of solid markets in the mid west from Pitts, PA to the Rocky Mountains that allow investors to enter the game in the appropriate way. 

This could provide a steady stream of additional income while allowing you to stay in the home you like.Short-term rental: If renting out a room isn't feasible, you could explore the option of short-term rentals through platforms like Airbnb.

@Barrington SmithI use this equationto back into my maximum allowable offer (MAO)ARV - Rehab Costs -Holding Costs - Purchase & Sale Costs - Desired Profit as a percentage ofARV = MAO