Anyone pursuing this strategy for downpayment funds on a more traditional mortgage or an in-house mortgage product.

Traditional 30 fixed rate year mortgage How did you add value to the deal?

By leveraging the tax-exempt market, states and cities can offer lower mortgage rates to middle- and low-income individuals than traditional banking methods.

Many will do subject to and realize in many instances the borrower on the other end typically does not qualify for traditional financing, so you are taking on that risk. 

Every time I have analyzed a short term opportunity, the cash flow tends to be close to the same as a traditional rental.

After the repairs are done, I would recommend refinancing into a traditional mortgage and paying off the hard-money loan.

Jason,I agree with your plan to use the DSCR.Any traditional debt impacts qualifying for future traditional loan programs.

Unlike a traditional sale there is no due diligence period as part of the sale process.

Are either of these scenarios considered prohibited transactions:1) Purchasing a property with SDIRA funds plus my own cash.2) Purchasing a property with SDIRA funds plus traditional bank financing, then using my own cash to pay down the financing. 

I'm not aware of any other real-estate related options, and outside of having a business of some sort to have write-offs, I only know of the traditional things like maxing out retirement contributions and such.