I realize I can just wait it out and cashflow nicely, but I'd like to get the ball rolling on additional properties here at the beginning (happy to hear arguments for/against that too, btw).The solution I was thinking of was to do some sort of intermediate loan with private money until the 6 month period is over and then go with traditional lending at that time. 

I am looking to get traditional financing to make a lower monthly payment because it will be  $700/month with the owner financing agreement.

Why not refi the fha under another owner occupied traditional loan structure?

Has anyone here gotten their start without these traditional ways?

These units are rare to pop up (I stay in one of the units each Summer) and usually are gone in a week....so I know the opportunity is 'there'.The goal is to relocate in 4-6 years and use this as a primary residence (but still travel and use as a vacation rental).I'm confident w/ the rental history of these units and comfortable with cash flow (hate having to initially throw down so much $$......but HI has their 'rules').

Bob -  you might  contact  the smaller to mid size local banks in your area  as they might be able to work  with your scenario …..do you have a primary residence ?  

I am writing this to you now (2 years after your post is a bit late, I know) as part of our tradition in this industry of providing value first!  

Probably best that you do nothing if that is your primary business concern.

     We bought our primary residence here in L.A. 3 years ago and currently have $425K remaining mortgage.

Also, I travel a lot in my primary profession so I have no issue with vacating my condo and finding another living situation (maybe a small apartment) if I'm able to develop a passive income stream by doing so.