Hard money loan would be the third option, but the interest may not be worth it, am I correct?

I'm late to the BP party but looking forward to getting involved!

You and your immediate family members are considered to be disqualified party to your IRA, and as such are prohibited from entering into any transaction with your IRA.You may want to consider Solo 401k which comes with the feature called "participant loan" allowing you to take a loan from your 401k up to $50,000.

Paying a proficient short sale negotiator is worth it's weight in gold to increase the chances of a short sale being completed efficiently and in keeping a strong line of communication with all parties.

Perhaps a nice 1950's built bungalow.Always hire a 3rd party property inspector to give you an unbiased feel for the home.

The third year it went up to $1975/month so another 4.31% increase.

and third question is whats the most important to ask the seller about inheriting a tenant?

The purpose of your first deal is to set yourself up for your second, third, fourth, fifth deal.If your expectation is to hit a home run on your very first at-bat, you might be setting yourself up for disappointment.

I worked with the wrong appraiser this time. when your HML and private investors loans have  12% interest only payments, I bet you'll rethink about that 12 month seasoning period hahamost lenders do 70-75. not all. you can find higher LTVs if you trytrust me, I've had about a million people tell me to 3rd party my management however in my situation a lot of money would be thrown away doing that.

@Jorge Barboza Jr.Tom is right, determine each player's roles and contributions, including time, talents, and money.You may even decide to have one party active and the other passive.