Pair the deal with a cash flowing instrument like a tbill, mortgage note, or some other form of fixed income to help yield too.

He's seen me grow to four units (3 properties) and I'm thinking, there's gotta be a guide or book that would help him just follow step-by-step how to rent out his existing property and buy a new one.

I would check with Dennis Kahn at Homestead Mortgage or another popular mortgage broker here, Zach Starnes or there are several other lenders that can re-fi off appraised value much sooner than 1 yr.

Because you are forcing equity into the house you are sometimes able to pull back out the entire purchase and rehab process to return to your investor then you own the home with just the mortgage.

This is Occupancy Fraud, a very common type of mortgage fraud. 

It looks like you can use a 203k loan for new construction to reconstruct on an existing foundation.

He wanted me to paypal him 750 so that he would send the 20k needed to bridge the gap in the loan.While Facebook can be great to connect with institutional loan officers, mortgage brokers, etc.., true private money is a little more difficult in my humble opinion.

@Jay HinrichsPre-reo was owned by AHP servicing (plenty about them on here), this platform was homes that had yet to be foreclosed on (I think they were reverse mortgages) that they would sell and manage for investors.they would also finance it at 12%+ rates.

Okay, let's say Joe hates Bob, Joe knows Bob has mortgage problems.

With existing tenants, you DO KNOW THEM!