Thank you for sharing.I think your idea of getting into a house hack is a great way to add to your portfolio with low down payment. 

Landlords have rights, too, and HUD is cracking down on tenants who abuse this law, so HUD is not the enemy of landlords.

@Jon Thomson You didn’t mention what your current mortgage rate was but no sense paying down or paying off a low rate mortgage just to then borrow from the same property at a much higher rate.

And you're not getting 5% down on a rental property.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

Head over to Wenatchee or Spokane and there are some super fix and hold deals as these are  strong rental markets. 

Purchase price 89,500 client has up to 15% down.

You must track down all the heirs or anyone who knows the heirs.

-Buy the property for 715k (It appraised for 700k)-325k loan on the property with 390k equity-SubjectTo Finance the 325k and take over the mortgage/deed-Seller finance the 390k equity at 0% interest for 2 years and 6% interest for 13 years with a 20k down payment paid over 6 months.

Class B would be older (maybe 10+ yrs old) with the same amenities, or you could argue that new construction, but with cheap finishes and "bare bones" amenities, would also be B.For area: it commonly comes down to crime, schools, and convenience/entertainment access.