Hey Stepan,In today’s market, finding solid flip deals requires being more strategic with property selection.

If the property is considered non-warrantable, you should still be able to do a standalone 2nd mortgage at 75-80% CLTV on an owner occupied nonqm 2nd mortgage. 

Just do a little bit of research and connect with a great property manager.

Do you have property managers and contractors who your clients have been using for over a year successfully?

My goal for this deal is to purchase a cash-flowing multi family property to buy and hold.

Be careful when you start thinking other sales will equate to the same numbers for your property. 

And the hardest part of all this is finding sufficient labor to rehab/manage the property. 

Why not save more money and look at higher value properties?

As you alluded to, sometimes a passive note investment purchased for monthly payments “goes south”, and becomes an active participation investment, with plenty of additional capital required for legal fees, forced place insurance, and property taxes.  

I am planning to offer an equity position to a friend in a property I am currently in the process of refinancing.