While sophistication of your equity partners (private money lenders) will vary between residential and commercial, the principle of raising private capital is the same.You need to develop your own system which allows a constant stream of PML even when you don't need the funds and/or don't have an active deal under contract.For example; I raise private capital by offering free educational workshops for people with self-directed IRAs.

I have not used hard money on any of my deals yet. 

I figured lowest money out of pocket was the best way to go, and in this case FHA would provide the lowest downpayment.

During this 24-month period, the property must be rented to another person at a fair market rental value.After the 24 month period your sibling could convert it into a primary residence.

BUT.... but, but, but, also how a person manages will impact this.

There is no universal right or wrong, it's personal, it should be a strategy that enhances your life not takes away from it.

Hotels lose money with no guests.

It's always a personal choice everyone has a different perspective.   

Some people just can't do the right thing when it comes to money.

Or if its a total bummer your client does not blow due diligence money on something that is not going to close.. this is very common when working with wholesalers who dont want to spend money on anything.