They bring higher tenant turnover, limited cash flow, and attract traditional tenants who aren’t your ideal long-term buyers.

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

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

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. 

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

Fake investors, you can sell the dream, the hustle is sold separately  thats why lottery tickets sell so well.. dream with no effort. 

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.

For the ballon payment I would plan to refinance into a traditional 30 year loan.