That said, I completely understand your concern about deals looking "too good to be true" when you’re putting in 50% down.To avoid this, it’s best to analyze properties as if you were using more traditional financing (20-25% down).

@Raj VardhanI agree with @Evan Polaski regarding the 6-Month Seasoning Rule: Most traditional lenders require a 6-month holding period before you can do a cash-out refinance.

Traditionally I have sold the builder land and loaned him the money to buy the land and build the house with us splitting up the profits when it sold. 

The problem we are having is much of our current deal flow is below traditional lending terms (<$75K).

If you’re working with a community bank or a traditional lender, these issues may not be as relevant.

I cannot qualify for traditional conventional for multiple reasons but the over 200 to 1 debt to income ratio is a primary reason.  

Yes, most large traditional lenders only focus on 1-4 units and other properties that fit into a box. 

@Julie J.My recommendation would be to wait until you can afford a home with traditional financing.

I assume the sellers are offering seller financing since obtaining a traditional mortgage or refinancing to one after 7 years for this property is highly unlikely.

What’s your experience been like with traditional lenders vs. private options like ours?