I chose this market cause of the low purchase prince and relatively high rents, some still passing the 1.5% rule.

here is my input on your questions:you should expect high 6s or even 7.Yes, WJS +1 is a good rule of thumb.

@Michael A PiersonThe first thing is always to learn about how to use a SDIRA, the rules and regulations, and prohibited transactions.

I know they pay to be members and thus get the right to participate but what about learning about their rules BEFORE making a commitment to buy in?   

Oh, sorry,  @Sean OToole, I did not think about the forum rules thank you for pointing this out (I am new to BP)...Will PM you. 

However, this rule is not closely followed, it is there though.

Honestly the realtor did not know much about the rules around it.

One other thing you should consider is writing out every rule you want them to follow, and be sure to be up front about them.

Fannie Mae subsidizes interest rates and loan terms, so if you want that subsidy then your LO needs something that can be sold to Fannie, which is where the profit is at in mortgage lending.There are non-Fannie Mae loans that do not care about FNMA rules, but you also lose the FNMA subsidy on the rate and terms.

I even heard that Austin was thinking about softening the rules a bit.