@Brian Gibbons,Would it be too much asking for a new link for your video about talking to a LO seller?

Brian was gracious and talked to me about a business plan, wholesaling, LO assignment, marketing and compliance/legal issues in light of Dodd Frank e.g. getting an attorney involved and more.

Turns out the LO owns 30+ smaller properties in the state and says if he can't do it in house he knows a few contacts that might

The early discussions of DF here mentioned specifically the folly of a long term LO.

@Brian Gibbons has done a ton of SLO's, whereas I am mostly the LO Assignment guy, but Brian and I both agree that you need to have reserves in place if you are going to be doing a sub-2 and/or SLO.Also, don't forget closing costs, and the contract has to state who's paying for what.You also want to do a title search on the house before you take it sub-2, as it screws the buyer if it has other liens on it.Also...to be honest..I wouldn't count the option fee in the "equity" category.If he doesn't purchase you haven't just added equity..you spent the $5k going on vacation as soon as you got it!

As a LO for the largest US lender this is an FHA loan.

If I do get seller financing on the deal (whether it be sub-2, L/O, Land Contract, Trust Deed, etc) AND the note gets called due should I be worried if my flip time is one month and it takes another 60 days to sell?

To answer your question FHA is the easiest way to buy this 2-4 unit property building if you dont want the underwriter to question the distance/commute of your main income source then you can use the "kiddy condo," method which is you are the primary occupant and the income used to qualify is from a co-signor on the loan such as parents, family, or relatives.If you have a job the UW it may draw suspicion like another LO above mentioned since its not realistic to have a primary residence that far from your occupation.

@Zacharias Salva - More important than the cap rate is what your personal goals are.  

See Mindy Henderson for a referral.Here is a map showing in what states I can operate.http://mortgage.nationwidelicensingsystem.org/profreq/testing/Documents/UST%20Adoption%20Table%20and%20Map.pdfThe rest of the states require a LO to be approved by their state commission individually.