I think this makes financing interesting as I won't be able to get a traditional mortgage. 

Most traditional lenders have six-month seasoning (i.e. ownership) requirements for you to get refinanced and get your money back out.

@Josh Fernandez When you buy a foreclosed home you still have to go through the traditional closing steps as if you were buying a traditional sale.

Then your cash flow is great or you can refinance and pull all the cash out for another deal.Here is what else I like:You purchased it for $150,000 and loan is $138,700 so you only have $11,300 into the property which is only 7.5% down payment - I am doing 25% down with traditional lenders!

They suggested a traditional loan as I have excellent credit.

In traditional LTR there’s standard landlord and tenants policies, as we know. 

Not sure how big a building this unit is in.1) it will take 30-60 days to close if going the tradition mortgage route.

Thanks,Christian

To help my brother convert his traditional house into a fourplex and become a vital part of an up-and-coming nonprofit organization.

Pay off the outstanding balance and the seller what they're owed (both stated in Purchase and Sale Agreement for everyone's safety).Obviously some of this is not traditional, such as getting something under contract before a debt is paid, but Real Estate Investing is usually more open to creative solutions.