Here's a breakdown on loan options to consider:FHA Loan: @Brittany Minocchi is right in looking at FHA option.  

If you aren't going to be living in CR full time as you try to execute the deal I do not think it is physically possible for you to obtain a loan from Scotia Bank and not worth your time to try because the rates are so high. 

@Cody Caswell there's several things to ask about here that might not be answerable in a forum:- Why do you need an FHA loan?

Quote from @Juan Ruben Cortez: I believe the funding fee is 0.5% of the remaining loan balance, plus maybe another $500 - $1,000 in lender fees. 

So bye-bye all the Brrr's and Multi's and what not, we need SIMPLE, right, a good simple SOLID base-hit, right. 

Unlike a mortgage the interest on your loan will not be tax deductible.

If I got a home equity loan for Property 1 and used the proceeds as downpayment for Property 2 and then got a 2nd loan for the remaining 75% purchase price for Property 2, when I sell Property 2, can I use the Property 1 loan as part of the cost basis for computing Property 2 capital gains?

How should I calculate the ROI considering I really only put $40,000 in the deal with out of pocket cash and my 401k loan is like a hard money loan on the side?

Stop reading if you want.2) I couldn’t guess what “There is a 6 months of grace period before interest payment begins” means.3) They call their $3555 charge a “Loan Fee,” stated a few lines up as 2%. 2% of $235,000 (loan amount) is $4470.4) Do you seriously believe the loan fee, “… IS 100% REFUNDABLE IF THERE IS ANY DEFAULT FROM THEPART OF THE LENDER OR IF THE BORROWER CHOOSES TO TERMINATE THE LOAN.”5) It’s okay to pay an appraiser directly.

I doubt he'll be able to quality for a loan (VA) with just his income.