Looking at traditional financing for a 30-year.

Option 2: I found a house that the asking price is 930k , but I’m sure I can get a discount on it because it needs a lot of work , it doesn’t qualify for traditional financing , so I would need to take a hard money loan , it needs about 150k worth of work , the plan would be to offer the full 930k asking price but ask for a 6% seller concession , I calculated 20% down payment and 7% closing cost , so total after seller concessions comes out to 21% down payment which is $195,300 .

win the lottery

The "backdoor Roth" strategy allows someone who earns too much income to be eligible to make a direct Roth contribution, to make a non-deductible contribution to a traditional IRA, limited by the annual contribution limits ($5500 for 2013), and then do a Roth conversion by rolling the contribution over from the traditional IRA to a Roth IRA.

I am actually trying to lock down a private money lender so I might not need a traditional bank for the loan. 

I was wondering if I acquired another SFH via traditional investment loan, and either rented whole house/by the room - would the income count towards lowering my DTI?

You are comparing apples and oranges - i.e. sellers who place their home on the MLS without a traditional agent and those that never put their homes on the market but do a private deal.

We use the traditional lender and get 15 percent down How did you add value to the deal?

If you are working with the right team they close a lot more quickly than traditional loans. 

People ignore that for the same reasons they ignore the odds on playing the lottery - they want lots of money and they want it now.