Rate is higher than a traditional bank but lower than private money or hard money.

If using traditional financing, I would recommend going with the multi-family unit and live in one of the units for a year or so.

@Christian Bors @Darren Budahn  Will look up the posts you suggested and see which fits my situation the best. 

If I was to purchase a multifamily investment, for example a 6-unit property, and turned two of the units into vacation or short term corporate rentals that increased NOI when compared to traditional rental income with lower NOI, how would lenders look into this in terms of a value add to the property?  

The plan is for my wife and I to get a traditional mortgage inorder to purchase a home to renovate.

You then take control of the property with a Lease Option Memorandum and then offer the home as a Rent to Own home to individuals who want to buy a house but can't qualify for traditional financing.

If you want to obtain another traditional loan, you'll have to wait a while before you can get that 2nd property. 

Do you only work with people looking for hard money or do you work with people who will get traditional loans as well?

I really would like to understand how to invest in Real Estate and become successful at it so I can be an example of success and also continue this tradition of charity by informing the uninformed.

I'm also trying to decide if I should do traditional mortgage on it, or an FHA loan.