I have found pretty favorable terms (4%, 80% LTV, 25-year amort, no balloon, adjustable every 5 years with caps).

i.e:  invest in another state on properties that is favorable to landlords and have a property mgmt company manage them for a fee and still break a 5% return at least...

Ex: 7% pref with a 80/20 split in favor of LPs on the cash flow or sales proceeds above the pref.

@Evan CarricoYour plan really depends on the applied level of these factors: time, capital, knowledge, skill set, network, effort and maybe some luck.Assuming you are investing in a favorable market for short term rentals (STR), you could use STR partnerships or STR arbitrage as a business model to generate much higher monthly cashflow per property and reach your FI goal in less than a few years with fairly little capital to start with.

I've heard credit unions and smaller banks can have more favorable terms or specialty products, as well as business lines of credit.

I understand that states such as New York and California are more so favorable towards tenants.

Benefit with them is a conventional offer looks a lot more favorable to a seller and is perceived by them as a clearer path to close. 

But your broker is right, its still possible, just a lot less favorable.

@Tania Lopez If you and your husband are favoring selling and doing the 1031 route, you should start talking to a Qualified Intermediary and keep them in the loop as the process progresses.

We have saved some money over the past few years but need some help locating deals.We are wondering what markets are most favorable for the strategy?