This could make sense if you do't qualify traditionally, AND you plan on refinancing again within a year or so. 

Many don't come from traditional lending sources.

Hello,I recently transferred my traditional IRA into a SDIRA / checkbook LLC account and am working on closing on my 1st investment property.

Tenants can be frustrating (to say the least)... and the situations that come along with them - from stopped up toilets to evictions, among many others, present challenges.I wouldn't recommend a Heloc for a long term hold as the rate is variable... and over 4 units you will require a commercial loan if going the traditional route of financing.  

@Raj VardhanI agree with @Evan Polaski regarding the 6-Month Seasoning Rule: Most traditional lenders require a 6-month holding period before you can do a cash-out refinance.

I'm familiar with how a SFH traditionally sells, and how it is based on comps.

Investors may like the income on the spreadsheet, but the appraiser for a traditional loan won't care.

@David ShirtsIn my experience, seller financing can be a game-changer, especially for properties with clear titles or when traditional loans aren't an option.

If the houses are in decent shape and could get traditional financing do not sell seller finance.

What’s your experience been like with traditional lenders vs. private options like ours?