Greetings, fellow investors!
Today, I’m reaching out to share something a little different from our usual real estate discussions, yet something that’s equally exhilarating. It’s not a secret that real estate investi...

So add 0.25-0.5% for a high LTV, another 0.625% for 2-4 unit and 1.0% for high balance (I assume this falls into the high balance category) and you're right around the rate you were quoted. 

The other considerations noted by other posters are valid, but when you weigh them against the high risk of extended vacancy, ending at the beginning of winter is to be avoided at all costs.  2 months of added vacancy is a 16.6% loss to annual income. 

I am wondering with what high population growth with this town and the area around it if it is a good start to purchase a townhome that I would be renting out.If needed any town within a 100 mile radius of there I can venture out to.Thank you!!

Sorry, but with so many questions, this scenario stinks to high heaven.You will be lending in second position at best.

Then the lender will borrow you the $200k at a very high rate hoping you fail to make payments. 

For example, cash flow might benefit from areas with high rental demand, while appreciation might be better in growing markets.4. 

Any advice would be highly appreciated along with some general contacts for property management. 

It's what they post as FMR, but it's not necessarily a reflection of what you are going to get, I completely agree with you.For fun, I went on rentometer.com because it usually shows good example, and for houses specifically, here's the numbers:1 – 4 Bed Summary1 bed2 bed3 bed4 bedAverage Rent$1,139 ±9%$1,735 ±5%$2,281 ±5%$2,892 ±12%Median Rent$1,000$1,750$2,000$2,67525th – 75th Percentile$901 – 1,376$1,319 – 2,150$1,681 – 2,881$1,987 – 3,79710th – 90th Percentile$687 – 1,590$945 – 2,524$1,142 – 3,420$1,173 – 4,610Standard Deviation$353$616$889$1,341Sample Size11596314Search Radius3.0 mi3.0 mi3.0 mi3.0 miIf would actually like to chat one on one with you to understand why all the FMR are so high in rentometer.com, zillow.com, huduser.gov, CHMA's website and you are telling me they are far from these numbers.

If you truly are as liberal as you say, then you have a very high degree of common sense.