Brandon Turner talked about it in his 2nd book, The book on real estate investing, he got a private money lender for one of his first deals from someone he went to church with.

Private money and personal funds.

If sold for the amount I want I will have 30k to 40k at the end.

We have sold a few properties and experiencing this process from the seller's side double underlined that for me. 

Why not just advertise it as a 4 bed/4 bath and promote the apartment as its own private suite? 

I do a lot of private lending and we do make some passive interest, but the good fixing flippers make the bulk of the money.

there just aren’t many sold properties in the neighborhood in the last 3 months and even out to 6 months is limited.  

Pyment is $1,054, but $625 is interest.If you sold current house and bought new one with same mortgage amount, but current interest rate of 7%, the payment would be $1,663, interest amount $1,458.So, the interest cost difference would be $833 month!

Another great option is the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), where you buy a fixer-upper, renovate it, rent it out, and refinance to pull your cash back for the next deal, and this is a good route because most private lenders can go higher LTV than on a rental loan! 

Another good thing (which is also a PIA) is that the borough has strict rental guidelines and also strict CO policies when properties are sold or rented.