So If I understand this I would be looking at base rate +4.125 then whatever additional rate the lender is adding on, minus points to buy the rate down? 

It is a great way to find deals, but I will say, it takes some work to find those deals and a trusted lawyer to draw up the contracts.

@Caroline Knight I am a local lender based in Chicago and I have helped hundreds of Veterans with their VA loan and house hacking.

I have just met someone who told me about the possibility of taking out a securities-based loan.

Maintain your curiosity, keep expanding your knowledge base, and look for networking and learning opportunities.

I intend on expanding the bedrooms since that's what the market seems to really like (the more bedrooms the better) based on conversations. 

Purchase price: $104,000 Cash invested: $20,000 Deal Deep Dive: Strategy: Buy and Hold Mid-Term Rental Buy Box: - Within 15 minutes to a major hospital - Within 10 minutes to a Starbucks (LOL)- At least two bedrooms- Light Rehab Only (paint/floors/decor)How I Found the Deal: '- networking with fellow local agents (I am an agent, for context)How I Negotiated the Deal: - Gave the seller what they were asking for to get in contract- Negotiated seller credit based off inspections - Told the agent who brought me the deal that HE could represent ME in the deal, which made it a win-win-win.

Fannie publishes what they charge to price in adjustments based on different loan factors if you google fnma llpa it will come up. 

Looks like they're based in India.

How I Found the Deal: '- networking with fellow local agents (I am an agent, for context)How I Negotiated the Deal: - Gave the seller what they were asking for to get in contract- Negotiated seller credit based off inspections - Told the agent who brought me the deal that HE could represent ME in the deal, which made it a win-win-win.