Last but not least, Reg D rule 506b requires that the deal sponsor and an investor to have a pre-existing relationships prior to investor's investing in a deal.

Increase on preexisting tenant would only be $25/unit if they stay & that is still well below market rents. 

Brian,You and your father can absolutely invest in 506(b)'s once you've met the pre-existing relationship rule for non-accredited investors.

If you have the cash to put down and want to work with the lender you already have a pre-existing relationship with then work with them to lower the down payment as best you can.Your decision to sell the property or flip it should be run through a filter of which option gets you to your overall goal.

I'm licensed so I dont wholesale (can of worms no thanks) but I'm trying to find out if there are any options out there where I can try to get my foot in the door without waiting for that 100k.Some options ice been suggested:Lease to own (with option contract)Deferred ClosingSituations where I might be able to convince a seller to do this;Land development with a preexisting house, sellers may want rental income during the subdivision processWholesaler having no luck on a deal that doesnt pencil as a flip, but seller might consider a deferred closingProperty is tied up in probate

But you must have a preexisting substantive relationship with the sponsor to invest in a Reg D506(b) deal.3.

Jason,In order to invest as a non-accredited investor, you need to have pre-existing relationship with the deal sponsors.

If you are doing 506(b), then you must have pre-existing relationships with the investors.

option 1 mortage                                                     3508 monthfront house potential income                2950 monthdifference                                                     $558  month expense to live in 1 bedroom ,currently paying   1858 monthless potential           558 month  savings of               1300 month, x 12 months  = 15,600 annual savings toward the next investment.this is a payout of  558 x 12 = $6690 year Option 2 rent front house     2950 rental incomerent back house      1650. rental incometotal rental income   4600, monthless mortage              3508.positive cash flow     1092.00 month. x 12 months  = 13,104 positive cash flow income. option 1now take that 1092.00 month toward another purchase  in that less expensive market and live rent free....option 2 or use to drop rent at preexisting house 2020.-1092.= 928 rent and two others are paying off your home . that is the options I see in 15 minutes of planning.  

Today the SEC came out with this as part of their complaint against a defendant selling private securities:"Respondents did not have pre-existing, substantive relationships with a number of the Fund’s investors and engaged in a general solicitation of public interest in the offering through Fund's website and traditional media interviews."