Best Strategy to use with Private Lender

[Steve Karpinski]

I have an interesting opportunity where one of my family members wants to earn interest on his money. He told me he would hold the note on a rental or possibly 2-3. He is older so he said he would want a balloon payment at 5 years. I have been using direct mail for flipping and have gotten more calls on properties that fit better as rentals than flips. I'd rather be able to buy the ones that are great rentals than wholesale them. How would this work? I'd have him buy the property in cash and then pay him the mortgage until I can get a conventional loan? How long do you have to wait until you can refi? It seems like the BRRRR strategy might be better here because then I wouldn't need the 20-25% down payment for every one. Are there any other strategies I could utilize with my lender? What strategy would you use? I'd love to hear from more experienced investors. I am currently working on my first flip and own no rentals but am trying to focus on a niche for acquiring rentals.