A traditional bank will not give a line of credit even if there is significant equity because it boils down to being able to pay back the money. 

If not, I'm guessing it would be treated as a traditional rental loan, either conventional or DSCR, using market rents rather than the rent in the lease agreement.

It merely means you will likely have a difficult time refinancing the property to a traditional lending source.

Theyre great products for self employed borrowers who will not qualify for traditional loans, but there's a premium for that convenience.

Multifamily real estate has traditionally been a stable asset class, and the Washington D.C. metro has traditionally been a stable market area, making the two together a good safe bet, especially for anyone with a long-term view of their investing strategy.

If not, you could always maintain 2 separate IRA accounts, one self-directed for private lending, and then another for your traditional investing.

My firm has several lenders who can seamlessly close in 15 days on 'traditional' mortgages at/below market rates and we've been doing so for a couple of years now. 

Maybe we can do seller financing for the $172K and then get a traditional mortgage after the fact with delayed financing?

It seems a traditional sale gobbles up half of it in closing costs.We refinanced early last year, and another refi would cost ~$5k, plus w/ the LTV, I don't think the numbers work out just right.Too bad we were too naive to even consider those offers when they were handed to us.

Jimmy,You need to show (2) years of 1099 SE income in order to use FHA, or traditional financing to get approved for a mortgage.