Account Closed It will only show on your credit report if the person who is holding the notes goes to a servicing company so it is recorded.

I've done this personally and have helped a bunch of other investors do the same.

To a point made by another person who commented, you may be able to have a lender do a 'one-off' portfolio loan at a 95% LTV if they trust you enough . good luck.

I work with a lot of MTR investors and what I am seeing frequently with multifamily acquisitions, particularly with new investors, is that they often test the property just like you're mentioning, as a way to dip their toes in the water and see what works in their area and for their personal style.

How we purchased our property: Combination of Savings, Personal Loan with interest from a family member (4% interest) and a cash loan from Wells at about 8%.

In your experience what are some ways I can understand the intent of the person who said they're interested in buying? 

During this 24-month period, the property must be rented to another person at a fair market rental value.After the 24 month period your sibling could convert it into a primary residence.

Did you have to jump through so many hoops and provide this level of personal information?

Personally, I bought a 3 bed single family home soon after starting my job and had two friends from college rent which covered my mortgage plus a little extra.

I am days/weeks away from trying it at my personal residence.  3500 sqft but only two people using it, so not sure how good of a test it will be.