Not without the bank signing off on it.

Now I could have had $40k from a 5% bank investment.)

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

Don't bank on them integrating with new technologies any time soon.Guesty for Pros: This is expensive but does have the most support. 

After my internship this summer I will have about 20k in the bank. 

How does one take the owner finance situation to a bank and turn it into a 30 year loan to hold without an additional down payment of 20 percent ?

How seriously is it enforced2) Who will do the transfer, do we have to tell to the lender or the bank?

Construction i completely understand it runs in my family. money is not a issue for me is getting the proper knowledge in this field so I do not fail.

Completely agree. what I failed to mention is The tenant is my daughter and her boyfriend... otherwise I would never do a month to month verbal lease.

Failing to follow proper procedures will cause even more delays.