You also cannot use a second mortgage (from HML/private lender) for a 2-4 unit non owner property. 

Property management companies and contractors are the people in your business who make or break you.I will send you a private message to refer you to a property management company that is doing good for me.Don't let the bad experience sway you away from real estate.

One big one is that scaling the lease option sale to a homeowner will attract both public regulatory scrutiny and private litigation, perhaps class action, once it reaches a certain threshold.  

There are always other options-hard money lenders, private lenders; but they are riskier and will likely have higher rates.

Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.

II wonder if it would stand up in court that they could force you to use their contractual payment requirements on your own Private property.

HML is expensive, better to use private money from friends or family. 

I'll shoot you a private message.

If you can purchase this home with private money or seller financing and get a $110k loan, then you could do a rate/term refi right after so do a 90 or 120 day note to secure the property and get it in your name, then refi into long term debt using the full appraised value. 

There is a lot of information on BP regarding being a private lender and outside groups taht have a lot of support in this space.