Each loan type will also have a number of fees that you will need topay to secure the funding (eg. you will be paying the broker for commercial,whereas the lender pays the broker in residential financing).My best recommendation is to talk with alocal commercial mortgage broker specializing inmultifamily lending.

I'll pass.Very rookie question for you, @Patrick Roberts and everyone else here: I thought that post-Dodd-Frank, the barrier for mortgage lender accreditation/licensing was essentially raised to a point that HML’s and private lenders were effectively iced out of securing loans with a mortgage or DOT.

Alternatively, you could take a loan against your 401k for that initial amount.Once you’ve secured the property and paid the 5%, you can then work with a private money lender (PML) to close on the property once the deed is ready. 

Here in Nevada, these shenanigans would cost the landlord twice the security deposit in small claims court.

Examples of pitfalls include purchasing in an undesirable area, not understanding the market values (vs. list prices), not knowing the rental values (current and market), inheriting bad tenants, buying a lemon, going rogue on renting and management with no contacts / systems / no legal understanding of PA and Municipal landlord-tenant laws, not having trusted resources and contractors in place, using out of state lenders or shaky financing, throwing lipstick on a pig when renovating a house and wondering why it's ARV isn't increasing, tenants are renting, etc.

Another option may be to secure the loan using primary residence as collateral. 

You need a securities license to sell securities.

While off market deals may be your ideal scenario in securing an investment - lets discuss ways in which i can also possibly make that happen for you.Personal Standpoint - Wholesalers -  i would be interested in investing outside my region should there be an opportunity in fix and flip or BRRRR.

In addition to the management fee and interest, you may encounter several other costs when securing a private loan.

Will this affect her survivors benefits social security income?