@Edward Kozic there is an important distinction that relates to @Tom Gimers point.

@Dave Van Horn :  I like the distinction between working in the business versus working on the business. 

But he could establish distinct and separate credit. 

Which supports your argument earlier, a vertically integrated GC that is doing rehabs themselves has a distinct advantage. 

Both communities are build by Bardis Homes, but in two very distinct settings just off of "the grid" / downtown Sacramento.(1)  The Good Project by Bardis Homes in West Sacramento (total units: 27 single family homes)List Price: $466,203 (closeout phase pricing)3 Bed/3 Bath (3-stories high)Square Footage: 1,880Amenities: River Walk TrailsOther Notes: Homes have medium-sized backyardCommunity Completion: April 2018(2)  The Mill at Broadway by Bardis Homes in Sacramento (total units: 800 single family, penthomes, multi-family)List Price: $430,000 (pre-model pricing)2 Bed/2.5 BathSquare Footage: 1,045Amenities: Master Planned Community with a public market, parks, & trails. 

@Chris Williams  I believe that you are talking about the distinction between a traditional IRA and a Roth IRA. 

Reason I recommend this is Dodd frank and if there is ever an issue and your Not licensed to service loans in that state, not only are their fines to deal with but possibility of invalidating the note and having to return funds etc. don’t want to scare you but lending vs servicing are two distinct issues that people need to be aware of when owner financing

When you are analyzing a BRRRR deal there are 4 distinct cost areas you want to recoup when you do the Cash-out Refinance.1.  

This distinction is required because your " Investment expense" is subject to 2% of AGI, but rental expenses are not. 

@Ashish Acharya - of course you're right on the second home distinction.