Another thing to consider is if you end up not being able to qualify for a traditional multifamily home, then you can purchase a SFH that has a casita.

Many of us started out using this strategy, and have continued to implement it with numerous nuances: House Hacking with an STR in your basement, renting by room in a SFH, and most traditionally in a small multifamily property where you take one unit to yourself.

It's quite different from the traditional turnkey model where the seller is rehabbing a 100yr old home and also managing the property, which I've invested in the past and not had a good experience with. 

I screen Section 8 tenants just like traditional tenants.

I eventually found a traditional buyer who got their own mortgage.

When funding your real estate deals, do you prefer PMLs or traditional bank financing?

There was huge demand this year and not much lasted more than a week on the market if it was priced right.As for traditional rentals muskoka is a great market because our average family income is around 59,000 per year leaving a large portion of people in that lower income level.

Hey Jake, If your exit strategy is to pay off the balance asap, I would advise doing a HELOC.But I would consider a traditional refinance if you do not have an exit strategy lined up to pay the balance off immediately  and your blended rate (1st + 2nd Mortgage) is significantly higher than a standard cash out refinance. 

They Seller Finance it with a balloon at 3 years, with the expectation you'll have established residency and be able to get a traditional mortgage. 

You can probably do it in areas without zoning or farmland, but it is very difficult in a traditional residential zone.Your best bet is to look for areas along busier roads that are currently residential and turning commercial or already turned commercial with lingering residential.