If you're thinking a Conventional loan... did your lender say if you'll be able to pass QM with such a small loan amount?

@Yinon Estikangi - On my BRRRs I've been asked by most appraiser for the rent amount and sometimes asked by the bank for a copy of the lease.

The apartment sale price 275k, loan amount 261k with 19k grant, no money out of pocket. after rehab rent 1850-2k month for location. my home 4 bd 2.5 b worth 217-230k will rent for 1800-2k month.

These guys did this for over 20 years .. it was determined that they actually made less than 12 loans in the whole time bringing in Millions of dollars 10k at a time to small of an amount to sue over..

Quote from @Kurtis Carriere: Im looking at relocating myself and my funds to the DFW area after completion of this property and will have aprox 500k USD but looking to only use 300 of it to as investable capital.i feel like that should be a good amount so that way i would have funding issues due to lack of american credit history.

Some banks required us to get full apprasial if loan was over a certain amount 500k. 5.

I bring this up because it’s identical to the amount you have.

Your loan amount doesn't matter. 

Just to clarify your water usage hasn't likely gone up 20%, but rather the amount tracked amount they are billing you for. 

If not, this sounds like you could set this up with seller financing where you pay your family member a certain amount at closing and then an agreed upon amount every month (like a mortgage payment).