With a Conventional Loan you can buy a SFH, Duplex, Triplex or Quadplex with as little as 5% Down if it is your primary residence as long as you have the intention of occupying one of the units for 1 year after closing escrow.This is the strategy I have personally implemented and have assisted many of my investor clients in doing the same. 20% Down is also beneficial as it keeps your payment low but it does limit your ability of buying more real estate faster.i would be more than happy to discuss the different strategies with you over the phone or in person.

The interest rate on a HELOC or Heloan may be better than the personal loan. 

I personally think being a landlord in Chicago is easy and I have never had an eviction. 

I have a situation where a person I know is moving out of the country and would be looking to put their home for sale in the summer.

No personal income or tax returns are required.

Not that it cant or wont, but unlikely.If OP applies for homestead on a new property, then I personally would not lie during the application about receiving the exemption on the existing property.

Code § 1343 - Fraud by wire, or commits unjust enrichment, or violates 18 USC Ch. 47: Fraud And False Statements, or perpetrates a foreclosure rescue scheme, or takes advantage of "protected person" or violates the Dodd-Frank law and/or the S.A.F.E.

I tried to create rapport with the owner over the phone but waited to present my real agenda only in person.   

Non-recourse has less personal exposure, but you need a very strong balance sheet to secure this without bringing in a KP.

Some will shed most is not all of their rentals and just do lending .. personal choice.. some things to keep in mind ONLY do first loans.