Quote from @Kyle Kline: Hello,I am curious if anybody has experience using short note investing to raise funds for an investment property down payment.

There are certain things that require experience that DIYers just can't get right or spend way too much time trying to do.

I run a MTR out of my primary bedroom and would be happy to connect and chat about your plans and what my experiences have been. 

That's looking at it through a narrow lens though, when you zoom out to 5-10-15 years down the road and calculate the difference, in my experience the appreciation has been far more beneficial than the $200 difference per month in cash flow from a different market.

That's the first question as real estate is like another job and if you are upgrading properties it's like running a daycare. also what experience do you have?

I'll just say that nothing is going to teach you more in this space than practical experience.

We have been self-managing another rental out of state and so far, it has been a good experience. 

Read my Utilities 101 below to see some options.

Your scenario is possible but not probable...admittedly I have never done what you suggest I've been the seller financing sales in my IRA, but I have read several BP contributors that have substituted collateral.

Attend your local REI meet-ups and try to find someone who is currently house-hacking or has house-hacked in the past to learn from their experience.