I would prefer to traditionally finance (commercial loan) but this may not be an option given current debt to income.

Try to get into traditional financing and renting the property out.

At completion we would like to refinance using traditional financing options, but need to leave it in the LLC as we have a lot of these properties. 

Not sure how I missed your response, Christian.

The challenge with you purchasing to house hack as a traditional buy is that most wholesalers will not allow an inspection period in their contract.

Seems pretty promising and definitely not nearly as many fees as a traditional brokerage.

Just to give you an idea on both of these markets, Austin is the more expensive market from the two and very difficult to cash flow doing traditional rentals, usually people opt for rent by the room to come out net or potentially cash flow.

But my friend just ran into this issues and was told that they cannot get any traditional SFH 5% down mortgage for a minimum of 1 year after the business share purchase date. 

Many who bought Harbour loans were contacted by the Attorney General (and ones I know were required to modify the loans with lower interest rates and transfer them to traditional mortgage and note).For those that have been following, there is another suit pending against many of the bigger players like Vision, One Pine (part of home opportunities).

This alternative to the traditional brrrr method crossed my mind.