Reduce Leverage – leverage can be used to provide higher cash on cash returns however along with leverage comes greater sensitivity to any loss of income.

I would also use a NON pressure sensitive adhesive such as Capitol VA-550 or something equivalent that bonds as a hard set to hold everything down.

How do I approach the sensitive strategy of house hacking a property like this?

If you take a call, hangup and call back...it's beyond easy to spoof caller ID.this also applies credit cards, banking, anything with money or sensitive info.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

Without going into super sensitive detail, I just cannot afford to put a normal 20% down payment on that house and I need a new solution.

For time-sensitive transactions, this structure works well as it eliminates the processing queue with the custodian.The workarounds you suggest are not allowable/feasible.

@Duke Giordano we're having serious discussions about possibly moving into that model, but for many of the reasons you and others have stated we've held off.One thing I will mention is a lot of investors don't have funds just rolling in all the time and may not want to sit on money to invest with someone they like, so the rolling fund could allow them to invest today.I also think a fund with less targeted assets would be more attractive for investors than 8-15 properties deep or something, especially in commercial or multifamily.Most of our investors are repeat and have invested in probably at least 50% of our deals if not closer to 75%, so they do get some of the benefits of diversification through the multiple deals, but thats over a few years so if they had $200,000 at one point in time, it could take them a few years to place rather than at once, and allowing newer investors to come in later on or in later funds.Obviously this could lead to time sensitivity of finding deals, but the hope is that the sponsor has several solid deals lined up, or consistent deal flow.I think at the end of the day it really depends on what you want to get out of it, and which suits you better.

Sensitive since it’s my son in law but I need to get house sold.You mentioned size of my house - If I understood you right you meant it’s larger home than typical.  

Now maybe it's a sensitive family situation and one of the random people you blasted the deal out to is knocking the door, maybe now the seller refuses to close because they are being harassed, maybe now you just blew the deal up for someone.The larger a blast list, the worse the deals IMO.