rate seems reasonable for a investment home.i use chemical bank. i dont pay origination fees.

If one of the partners was a realtor and wasn’t getting paid a realtor fee it could be a 4th component. 

I'm looking at a Fee Simple ownership of a townhouse.

I have experience buying in other states but not so familiar with the local rates for rent, insurance, garbage, sewage, elec fees for landlords owning multi-unit. 

They assured me she is being charged late fees, but when she makes a payment all of it goes toward unpaid rent first, late fees last.

I do foresee a problem with these tenants giving me a hard time with the changes that I am looking to make (rent increase, payment via check, late fees, and lease agreement). 

As an example, if a couple brokers say that it should be a gas station, ask them to speak to a few gas station developers who may be interested and work out a partnership with them or pay them as consulting fee for helping you set it up.

The only thing is USAA is telling me there is a 2.5% funding fee for this type of loan.

If you are planning on refinancing this as soon as possible you might ask about the seasoning period, which can vary between lenders and loan types.As @Tim Swierczek said, for a bread and butter mortgage like this you probably won't see much difference between rate, terms, fees, etc, its mostly about having someone who is easy to work with and who you know will get the deal to the closing table.

Preferable a reliable company that has reasonable fees.