If the other two parties want to flip a house maybe they can do just that as partners and then sell you the house which you can buy with a primary home loan with low down payment.

I’ve bought 5 houses from 401k loans too.

While you work on that, you could also explore creative financing options like DSCR loans or partnerships to fast-track your first STR.

At the refinance, I am able to get a loan for $180,000 and $20,000 of the money partner's money stays in the deal.

I'm interested in how others structure their ALFs.2) I'm thinking of going with an SBA 504 loan to acquire the property and do the remodeling.

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

I bought this property with a private interest free loan from a friend. the person i bought it from need cash fast so i offered them a low cash offer and they accepted.I had enough money saved up to rehab the house with my savings.

Financed Loan Amount: $172,0004.

I have also been doing quite a bit of research on Loan's, tax consequences etc., and am working towards being a expert in this niche.  

Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan.