Having the seller carry a second is not a problem for the first, as long as their business with you is finished and the loan has closed.

Personally I like to build with cash to avoid the extra expenses, so I dont actually finance anything until its done and I have decided to hold it.

Since you will be renting it out you should get a conventional loan.

Hey @Dalton Foote - I highly suggest  using a renovation loan and house hacking a multi-family if that is possible with your current life circumstances.The 203k and homestyle renovation loans are just amazing products and drastically help you reduce your risk, in my opinion, because you are able to leverage the cost of the entire renovation with such a low down payment loan.We work with a lot of clients who use these products in Chicago, and no matter what, in the long term, they gain great equity.If you aren't able to house hack - the process is essentially the same, but just with more money down with hard money or conventional construction loan.

I have personally been the guy who hasn't pulled permits and got caught...by far one of the worst experiences of my investing career.

Here’s the bottom line; unless the deal is VERY large, or the sponsor is going to syndicate a large number of deals, the investor will make more money purchasing the property theirselves with a option low to moderate interest rate loan.  

I highly recommend going to meetups and talking to investors in person. 

If the loan was fully funded at closing and since then the loan is in an interest-only payment period, these numbers would equal. 

Sell your car and get a loan on a new car.

Others may have personal experience to share.