Why borrow if you don't have to?

You can't stop a borrower from seeking funds elsewhere nor can you make a deal that won't stand with any other lender, the lender you steered the borrower away from with seller concessions may have a case against you.

On 1-4 residential this is true if the bank is conversative or is selling to Freddie Mac which requires 2 year landlord experience which is documented by having a rental on your tax returns for 2 full years.If a borrower can find a direct seller servicer to Fannie Mae, one with minimal lending overlays on their guidelines, can use rental income to qualify immediately with out any landlord experience however this income is ultimately up to the underwriter's final discretion.

Talk with a lender to understand your borrowing options.  

Or can you borrow car from a friend or family member?

The only thing he should be initially pulling on you is credit (based on your exit strategy--if it's a bridge loan and your credit stinks he may require a borrower with good credit).  

I'm interested in learning the tax effective way and also how to set things up so I can borrow over there.

Let the tenants pay the mortgage. there are better ways to purchase real estate at extremely low prices if you look around. if you want to increase your cash flow and maximize your use of the " borrowed" money, look into foreclosures that banks have written off and houses that the tax authority has repossessed for back taxes. these are ways to buy more than one place with the funding from one place. that is how you grow

Availability: Fannie Mae will allow borrowers who haven’t owned a primary residence within the last three years to qualify.

. - I'll be cold calling smaller banks and credit unions to find a motivated lender who should like my numbers, and try to create a long term relationship there to maximize my borrowing power. - This building took a year to realize full value.