I don't think I want to go with owner financing for my first deal.Conventional Financing and Property Management are lined up, but the estimate for insurance should be on the high side.Structure Details:Unit 14 - 2 bedroom 1 bath2 stories, built in the early 80s, brick and wood siding3 of 4 units currently rented month-to-monthRent ranges from $625 - $550 (tenant pays utilities)Mixture of tile/carpetSome units come with washer/dryer, but all have hookupsMetal staircase needs to be repaired or replaced $$$Roof is in bad shape, needs to be patched or replaced $$$Fascia and soffit  on 2nd story needs significant work as it is hanging with visible rotOutside AC units are a mixture of old and olderComps for nearby 4 plexes average about $165K on MLS (realtor friend pulled them)Tax Assessor Value $159,000Roof, fascia, and stair repair estimate $19,000 Unit 2 4 - 1 bedroom 1 bath 2 stories, built in the early 80s, brick and vinyl siding0 of 4 units currently rented, and seller said that he hasn't put any effort into finding tenants (red flag?)

But to make a long story short, my question is I asked my mortgage broker to dilute his commission by $5K in an effort to try to help get this loan closed since I need to come out of pocket much more then I initially anticipated and was told.I am going to copy his response below:""This is area where we're getting into banking regulations and not something I'm familiar with.Broker comp is set by the bank and broker and the lender pays the broker that compensation.It can also be set up as what is called consumer paid.Once the loan is disclosed.

@Rachel FourquetCan't thank you enough for effort you put into this write up! 

I don't get why an owner who neglects the property gets treated better than one who puts in the effort.

Make an effort to talk to people who are successful at what you want to be doing.

Any advice is better than no advice, so please feel free to give your input no matter how big or small the advice is.Also, in efforts to network and meet some of you more experienced investors in my area, I would love to have the opportunity to buy you a coffee sometime and pick your brain!

I'd steer clear given the inherent extra effort and risks when it comes to short-term rentals.

I'll keep any Section 8 tenants I inherit but otherwise have found that the effort of dealing with the Section 8 agency adds a hassle factor. 

I think this strategy could have some real potential if you are willing to put in some effort. 

You wont put the effort into it.