Plus your rate will depend on your credit score.

If you have a lot of equity and good credit, another bank doing RE loans will be glad to refi for you.

2: did they pay you a $6k Option Consideration, or was that a rent credit?

I didn't do an application or credit check, and said to him something to the effect 'you may be able to live for free if you get a decent roommate you can tolerate...'

A credit union I am talking to said that they insure their loans through freddie mac which only allows 4 investment property loans.

Good credit, income, low debt and even proof that I've completed conventional rehab loans in the past.

As an out of state investor wanting someone with skin in the game to care about the property, some kind of partnership comes to mind.Know a young guy, who is the son of a friend, who is buying property in a southern area that is conducive to cash flow.Understanding how one person that carries all the burden could feel like they are getting the short end of the deal, I wonder what kind of arrangement would be fair where one lives in the area, finds property and keeps track of it, while the other investor is out of town too busy to be involved.I have more capital and credit than does my young friend so my contribution would lean more towards the capital side but that makes the partnership lopsided.

If you have good credit and a enough to put the 20% down, then I would pursue a conventional mortgage.

1) ALWAYS get a detailed application. 2) Ask for references - landlord, personal and work related 3) Have THEM provide a current credit report - in my state that is legal - this way you create at least a "semi weeding-out" process right there.

I'm working with local credit unions.