In response to your original question, closing agents should handle private loans just like a bank loan. 

In terms of finding a property that "works," I think you are absolutely right, there are probably better markets with more reliable cash flow.

@Joshua MiddletonI am very familiar with that street, good friend used to rent Long term on it for about 7 years.  

Hi @Stephanie Medina, I suggest you go for it with your current LTR and make it a short term.

I have built up enough savings to purchase a multifamily property with an FHA (3.5% down) loan or Fannie mac (5% down) loan.

So the though Hey I have an 800 fico and I should get a loan does not work.

A short-term rental with a stay of 7 days or less + Material participation =also non passive.

Or, depending on the property you could go non-QM with like a DSCR loan and close in an LLC or partnership.

I’ve also taken out short term loans (1-5 years) to use as my 25% down payments.

Purchase price: $310,000 Cash invested: $50,000 Big Blue - 2 units fully rented, 1 with section 8 tenant and 1 unit being used for short term rentals What made you interested in investing in this type of deal?