This should roughly take me to 150k per year and carry the loans for land and construction.

If you're a single mom with student loans, a car payment, and living paycheck-to-paycheck, then $20,000 would be devastating and a reserve is critical.

@Patrick Roberts & @Tim Delaney- which lenders/ loan types are good for 80%?

We generally advise our clients to go ahead and pay the recapture rates if death is the alternative.The good news about recapture - the deductions are a deferred tax liability to you, and an interest free loan from the government.

Second year distributions rise to 5.27%, third year 7.27%, according to the projections.Those projections may be at risk, for many reasons: the recent huge increase in interest rates -- increasing the cost of loans and decreasing valuations, insurance costs have skyrocketed, real estate taxes are up, labor and material costs for repairs & renovations have increased, etc.On the plus side, the majority of the ODC funds were designed to be high value add projects with plans to increase operating efficiencies, add tenants and raise rents.  

Bonus - the interest on the loan is tax deductible!

@Ryan Daulton,You don't have to buy a house in SDIRA without a loan; you can easily get a loan, but it must be non-recourse.

Do you use traditional financing or do you us DSCR loans?

The other route you can look into is purchase+rehab loans if it's going to be a primary, if it's an investment then using hard money, bridge loan, or DSCR.

And if it's a high amount, would you be better off just using that as a downpayment and get a standard new investment loan?