If you are able to network with someone that can give you consistent deal flow and partner with people that will provide the funding you will be in really good shape.

Or, he could rent his home and use the rental income from it to fund a mortgage on the new home.

You'll still need 20%+ down and wont be able to fund in an LLC, but will likely get a slightly better rate/pricing.

Protect yourself.Our loan documentation package includes several handwritten forms that the borrower must complete at various points during escrow to establish the intended use of the funds.

Another investor in our mortgage fund wanted to visit every borrower and discuss their personal financial situation with them.  

However, if managing a rental doesn’t appeal or if the market conditions favor selling, selling could fund a larger down payment on your next home and keep things simpler.

They also have a track record of five prior funds which the track record was certified by a third party firm.

They will almost certainly demand a proof of funds letter too.

Just draw out any unused funds from your hard money loan before ordering the payoff. 

Use less of that and either get the seller to buy down your interest rate or you can do it and have a comfortable mortgage payment and still plenty left for your emergency fund.