Of course, the rate can be slightly steeper than the conventional loans where it is a full document loan, where they need to qualify you based on your income.Alternative way, is to acquire the 2nd property as an investment property with conventional, while putting 15%-25% down payment.

The larger downpayment you can put down the lower your payment will be and ultimately will save you thousands or hundreds of thousands of dollars in interest.

I'm current on my loan and have never been late or missed a payment.  

With a substantial down payment, targeting the suggested price range within Raleigh limits is not only possible but strategic, considering the city's job growth and vibrant community.However, as you've wisely pointed out, the expansion towards outlying areas like Selma/Smithfield and Benson brings both opportunities and challenges.

With owner financing, you can usually put a smaller down payment down (15% or so) to get in, then drive the value through improvements or rent increases to market.I always look for light to improvements and mostly rent increases with month to month leases or vacancies to get the best deals that I can move the rents faster. 

Interest rate is at 4.75% and the mortgage payment is slightly less than the market rent in that area.

In other words, it’s income that you earn passively with minimal effort and involvement.Strategies To Generate Passive Income1.Rental PropertiesRental properties can provide a steady stream of passive income through rent payments from tenants.

-Cut method is with a utility knife, not a saw (saves a ton on labor).

Specifically: skipping RLMO, having a balloon payment, and prepayment penalties.

@Kristoffer Tier looking into this method to potentially buy my family and I our first home.