I think you’re under a misconception that’s leading you to think you have options you don’t…You say it’s worth $1.1M and you’d net $500k.

Thank you. 

@Lulu LueHUD has 2 online databases of lenders showing which ones have the most experience with 203k's. 

These lenders allow you to originate your own loan if you are a broker with them.

You can be sure they will continue to negotiate for, strategize and advise themselves.If the laws are similar where you are, you should consider if you want someone doing those things for you, and whether you are comfortable going toe-to-toe alone with a licensed professional on a $1.25 million purchase.

If you're purchasing a single family home you can use traditional financing like you probably did on your house or you can do a commercial loan.

@Eric Smith, It really doesn't matter who you are selling your property to - unrelated or related party. 

Thank you!

You will have a very difficult time finding a lender.

Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?