My brother and I purchased a home 18 months ago in which the seller wrote us a fixed 4.5%, 5-year mortgage note as an incentive for a quick closing.

Know of an efficient way to identify hard money lenders that will solely focus on an 80K loan against a property purchased at $256K with me bringing the rest of money to the closing table?

My first step would be to grow your capital by investing in rehabs, partnering before purchasing your first buy & hold.

Purchase price: $1,280,000 Cash invested: $400,000 we were presented with the deal by a flipper needing to exit the deal. it was only rentable for $4500/mo as is, so we created a second unit. now it brings in $7200/mo What made you interested in investing in this type of deal?

What is the downside of using a commercial lender to purchase, my own cash to rehab, and then refinancing?  

We are trying to purchase rental properties to pay for my children's private education.

If they are residential you will have less time from offer acceptance to close usually that in a commercial purchase.

All-cash purchases provide stability and simplicity but may limit your portfolio size.A balanced approach could be:Use a portion (e.g., $400k-$600k) to purchase a few smaller multifamily properties (2-4 units) in cash-flowing markets like Toledo.

I completed my first BRRRR earlier this year and had enough cash for the purchase and rehab, but the LOC's are available when I need them.  

If you don't have it you can call your insurance company and ask them to email you the declarations pageRecent Mortgage Statement:2 Different Utility Bills: Gas, Electric, Cell Phone Bill, Cable, Garbage, any two utility bills.Copy of Mortgage Note all pages: Was included in your closing documents when you purchased the home.