The next step would be to get these folks together so they can talk.

My approach is probably fairly unique in that if the homeowner wants to keep the house and would traditionally not be able to, I point them in the direction of their equitable remedies and have had success helping folks keep their house and work out a sweet deal with the finance company to boot; I've retained a minority equity stake in the properties as a result.In the case where it's a non-owner occupied property and the investor no longer wants the headache, I negotiate either an acquisition in trust of the LLC/Corporation that is holding the deed, or have the deed quit claimed to me individually.

And, their money does indeed come from private individuals.True private money, which is what most folks who post here asking for private money mean, is an individual you know personally who's willing to invest in you.  

Most folks use encodes 

Nick, you did OK, I am an auctioneer and we look for folks at our live out cry auction who get AUCTION FEVER,  that is, bidding more than they should.

I think mom and pop will prioritize a home to live in before spending 100k on a SUV with 1500 dollar payments. younger folks will realize rent is a loser and try harder to be home owners in the better cities markets of the US.

In my shoes I would want the stability of the cash flow and look to leverage as a long term rental through a PM.Some folks want to cash out and reinvest the new found equity in a higher producing asset. 

That said, that now that the market has softened a bit, folks wanting the work permitted is probably going to be more common so it may not be a bad thing.My final thoughts are about your hard money lender.

Hi folks, I am trying to buy a quadplex to house hack for my family.

There are other options for folks with limited capital that may be more suited for the average new investor with limited capital.