Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

As far as I know, your assumptions about the tax implications are correct for non residents, it was one of the main factors that stopped the idea of investing in Spain for me.

Long story short, any owner-occupied property loan will require the borrower to show income that the lender can determine to be stable and predictable in their good-faith effort to confirm the ability to repay. 

We lost about $100,000, which we had borrowed from family.

My question again stems around using seller financing to allow them to receive a consistent monthly pay of X amount and delay/lower their tax bill in the short term instead of going through a lender to borrow 800k+ causing my mortgage to be significant part of our income roughly 40-50% of take home -  which we are approved for LOL.

They even sent someone from the city to the house to tell us to stop operating it as a STR. 

Most hard money lenders will allow you to borrow up to 75 percent of the current after-repair value after 6 months and most banks 12 months.

Borrowing against securities is a high risk proposition.

Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away.

Your IRA can borrow, but you have to be careful to not personally guarantee it.