It might take me 15 seconds more per transaction to do it this way, but it’s what has worked for me.

the lis pendens was dated feb 25th. im purchasing this from a wholesaler who stated the transaction will result in clear and free title.

That is if purchasing EXISTING performing investment real estate AND have very good clarity of every facet of the transaction ESPECIALLY reasoning for seller selling, AND you have decent market intelligence. 

I am not quite in that boat of disposable income that I could stomach losing, but I have determined a reasonable strategy of maybe going in 1k at a time on a 3-6 month journey to 10x 5 to 10 transactions.

Couple this with the "Cash Distributions from Capital Transactions" clause and you begin to see the real problem.

Abdullah said it could be illegal. 

It is illegal to discriminate based on "Source of Income" in many locations. 

For example, use $20k from one card and $5k from another so you don't have to do multiple wires for one transaction. 

Prohibited Transactions: Avoid transactions with "disqualified persons" (yourself, family, etc.).Alternatively, consider leveraging a HELOC (Home Equity Line of Credit) to access capital for investments.

Nothing illegal about doing that, but if caught, the lender may call the loan due and if you don't correct the situation or pay the loan off, they willstart mortgage foreclosure.3) You could also go the HELOC route to tap the equity in the home, but the 12-month owner-occupancy will also apply AND the interest rate on the HELOC will fluctuate with the Fed Fund Rate.4) You could do a cashout refi as an investment property, but that will be at an interest rate 0.5-1% higher than owner-occupied rate.Suggest you meet with 2-3 lenders to explore your options about the above.Once you have access to funds, recommend you buy a 2-4 unit with 20-25% down. - You can buy owner-occupied, live in one unit, and fix up and rent the other unit(s).- If you're handy, recommend buying a property in the worst condition you can tolerate.