I have also been doing quite a bit of research on Loan's, tax consequences etc., and am working towards being a expert in this niche.  

Contrary to most business lending, the REI industry has a lot of "non-bank" lenders that provide attractive loans that can lower your cost of capital and improve your profit/cash flow. 

I’ve bought 5 houses from 401k loans too.

Initial Financing: Used a hard money loan (HML) with 10% down, interest-only at 10.95% for 1 year.

Rates are high, usually in the high 8s or low 9s, and you may pay 2-4 points on the loan. 

The most important thing is to ensure your loan is covered in the event of a loss.  

you can use a DSCR loan if your DTI is too high for conventional. 

Hi Dean - we had access to a DSCR product until a couple weeks ago - it's currently paused, per my conversation with one of the loan brokers I work with. 

Financed Loan Amount: $172,0004.

Right now, the best offers around me are for some 1.3-4 million, that only generated around 100k per year gross, so there would be a high chance of not cash flowing, and paying money, especially with a commercial loan (these buildings have more than 4 units).I was thinking that although the rental itself does not generate money, I would be able to deduct the mortgage interest, and depreciation from my personal w2 income and would be net positive.