What's the point of getting cash flow if you lose all your capital?

They require all cash to buy so the people there have money.

If you have a chunk of money to get going I'd personally buy the biggest thing you can if you don't I think house hacking into a 4 plex is great. 

He get's principal and simple interest payments over a number of years.I'll manage the deal and the property.Looking to create a proforma for this that would fit a typical rental analysis but insert the detail of having private money cover the DP.

You should have money set aside for litigation.

Quote from @Victor Patel: I recently invested $60K with a local hard money lender who has been established in the area for decades.

How can I lose???

You need a firm estimate for the remainder of the work as your funds are limited (like most people who don't have an endless amount of money). 

It’s the same thing except it’s done in the name of the IRA and all the money comes out of the IRA and returns go back into the IRA. 

What key factors influence your decision to partner with a lender for private money in real estate?