Not sure it makes a ton of sense to use a broker here and pay 1.25% since you are already on BiggerPockets and can shop directly for lenders here!

These loans come from people or groups, not usual banks, and are often used to buy properties, refinance, or fix them up.

So many people treat MTR like a unique investment class, but it is not.

Borrowing other people's money sounds great but the market prices are high and hard to make profit if you borrow the down payment and borrow for the remainder of the mortgage loan. 

What you are proposing is a theory, it doesn't make sense in real life.

We have spoken to a few people regarding the bedroom situation and it looks like its not going to be an issue.

My advice is to stop listening to the people you overheard. 

There are many ways to do it, it's a matter of what makes the most sense for your situation.Start researching what areas you want to eventually live in- that also have a good rental market.

I sense a perfect storm coming for mom and pop landlords in the area. 

Just remember real estate the last five years was an anomaly and it usually takes 5+ years of hold time before you could walk away with profits from a home - which last few years made people think that holding real estate for short periods is profitable - historically it’s not