You can open a Self-Directed IRA and use the IRA funds to buy a house using a Non-recourse loan. 

What loan size and loan to value?

Cash flow is definitely the biggest challenge; both in terms of finding properties to buy that cash flow with a loan on them and just company wide given interest rates and labor/material is up and, at least where I'm at in Jackson County, MO, taxes are way up too. 

Quote from @Jaikevis Reams: In order to put a property under contract I need to provide proof of funds I know that I can get that from a hard money lender but I don’t meet there criteria for a loan approval what should I do? 

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

Its a tiny loan for any institution.You'll have to get hard bids from a local GC, but maybe $110/ft?

Financing might be a challenge.I would recommend consulting with a attorney, loan officer, and CPA to discuss your specific situation and determine the best course of action. 

Loan interest is deductible based on the use of the loan, not the asset securing the loan. 

If you close with a conventional loan, it will need to be in your personal name.

Hey Patrick, This would be a DSCR loan.