Unlike traditional banks, which focus heavily on personal credit and income, portfolio lenders prioritize the cash flow of your property.

So it is really looking more at bank deposits, but most mom and pop owners won't share bank statements.  

What makes it slow in this case is that you don't really start seeing real cash flow until after year five but it's more effective than rentals in that there is little to no maintenance.Sure you can live in a home while fixing it up with the intention of selling it for a nice profit later but I think many people are already doing that and the buyers of slow flips now also have that opportunity without having to qualify with a bank.

@Tim ZozI see him post a lot about infinite banking on YouTube.

You are going to end up out your money on this deal as soon as the bank discovers the note holder has moved and signed an agreement with you to sell.

You are borrowing money from a bank.

You can get the $20k from the bank day in and day out.

Some banks and credit unions are more flexible, especially if you have a strong financial profile.

My concern is that if i apply for a HELOC to use for the down payment before i apply for a mortgage, A) I wont get approved due to my DTI ratio, and B) I wont get approved without first showing the bank I have the 20% down payment before pulling the HELOC.

There are also additional costs of operating and maintaining an LLC, like separate bank accounts, annual report filings, tax filings, etc.2.