For illustration purposes, two identical homes on the same block with a FMV of $100K are listed.

Most lenders are going to want to see a few big things from the ownership group. 1) The borrower will be the enitity (LLC, S-Corp, etc) and any owner with usually 20% or more of ownership in the entity will be expected to guaranty the loan, 2) We'll want to see some experience doing similar projects from at least one of the main owners, 3) We'll want to see bank statements showing liquidity enough to cover the intial cash injection (down payment), the closing cost, and some cash in reserve.

I have since transitioned to Baselane for my banking and bookkeeping purposes.

If you look at what they have avaliiable on the website its mainly desert lots.

If you are NOT running a trade or business - 1099s are not required.The main reason why you WANT to be "running a rental trade or business" is your eligibility to claim business overhead deductions, such as marketing, education, technology, and so on.

But, if they do not it means they can ONLY do business purpose loans. 

IDEALLY, we would like to find a property that has or is capable of being converted into a “mother in law”, “ADU”, “Casita”, or any other separate living quarters in which we could rent out the main portion to a tenant (short term or long term) and then use the separate space as our own for when we come and go with business.

If the purpose is to avoid probate, then everything should be in the trust.

Have a fantastic day on purpose everyone.

The main thing is to find motivated sellers before they list their homes with a Realtor.