I may adjust up or down depending on the initial repairs that it will take to get the property online and in production.  

Even for a local bank, why would they add a layer of risk for themselves by offering a product they cannot sell to Fannie/Freddie, without at least adding in risk premium into the rate. 

Great way to get in at an affordable rate and create sweat equity that you can leverage for your next investment! 

Despite tight housing inventory, rising interest rates, and affordability challenges, Austin posted double-digit increases in both single-family home sales (up 13.5% YOY) and sales dollar volume (up 19.8% YOY).

He wanted $1000 in earnest money at signing while I want (and really can afford) only $100.

If they feel that they can stay in your property until they can find a nice place which they can afford and be approved for, they will hold out for that.

So, in lieu of appraisal fees going up 50% so that an Oakland appraiser can actually afford to live in Oakland without doing a zillion super quick appraisals a month, sometimes you've got to "help" them like this. 

I was kind of wanting to start smaller for my first property, and keep to around 40-50k (that way if it didn't work out, I could afford to pay the loan and not lose my house).I'll also be transferring the cash to an LLC in order to build equity/assests for that, so that's a reason I decided to go the route I'm going.

If you choose to sell then you can sell at any point but the discount rate applied to the cash flow may be more of a discussion to reflect the uncertainty of a new product. 

I managed to find a lender with a decent product (SAFE Federal Credit Union).