I assume your question means you already have a 600k property that you owe 420k on, and are wondering if you sold that property to buy more properties which way would you come out better over time. 

It probably be best as a friends-and-family type loan, but I don’t have anyone around me that is an appropriate lender.If I have to, I can put the funds in myself, but its inconvenient, and would come from investments that would need to be sold, taxed, etc.

You can find us online.Current Ideas: Video Series on Passive Investing in MHC, Tax Benefits of MHC, Investing through 401k etc. 

The property is distressed (unpaid taxes for 2 years).

She still owes 57k on her 80k mortgage.

When in Due Diligence have a thorough inspection and get estimates for any work that is needed now and potentially in the next 3-5 years. don't forget about the tax benefits to doing the work upfront.

The greatest property tax sale state

Legitimate, in this case, means that the entity is part of an overall business investment strategy whereby you have a business plan, tax returns, and the funds you seek are for further business expansion.If, however, the LLC is a stand alone entity, is not profitable, or is not legitimate, then your probably better off putting into your personal name and securing funding that way, or still talking to local or regional banks to see if they have any loan programs available where you might be able to secure financing.

We’re really best suited for those high income earners out there with strong investment experience and cash positions to literally take the reigns and create a strong cash flow product and tax write off for them with minimal time spent on their part.

If we sense there is a red flag, were asking them to upload additional documents like tax returns w2's etc.