Option B: do traditional wholesale assignment to other investors that will flip. 

He already owns a how with a traditional mortgage.

For this reason, our real estate agent brought up the idea of doing this with our property instead of turning it into a traditional rental.

@Christian ScallaPMI is not required for commercial loans (5+ unit properties) because you will be required to put down 20% - 30%, so no PMI would be needed.If you buy a 1-4 unit property and don't live it in you will still be require to put down 20% to 30%.To avoid a down payment greater than 20%, you would have to buy a 1-4 unit property and live in one of the units to make it owner occupied.

Can this be done with a Roth 401k and a traditional 401k? 

Realty mogul and Fundrise invest in more traditional commercial real estate investments  which yield a little higher, but may have more risk in a downturn.  

I am always interested in creative and traditional financing to help me fund more deals.

I went the tradition route and obtained my bachelors degree from The University of Alabama.

THis lender has already financed the entire condo so will not have the same hesitations as a traditional mortgage lender.

So @Christian Cascone that is an interesting strategy.