Ultimately, the choice to sell your home with a cash home buyer or via a traditional sale is up to you!

Most traditional lenders are not going to want to do something like that.

This type of financing is traditionally for 1-4 unit properties, but a couple of the Big-5 were/are underwriting 5-6 unit properties with residential lending (this is their attempt to target an area where commercial lenders will not lend).One challenge you will encounter with smaller commercial properties (5/6 to 10/12) units is the deal size may be considered too small by many {commercial} lenders who are not usually interested in underwriting financing less than $1-2M.An option would be to approach a credit union as they frequently underwrite any rental property with commercial lending and will look at smaller deals.When you do finance a property commercially, while the debt will not be registered against your personal credit, the lender will want to confirm your financial house is in order and you are not personally leveraged too much.  

Private lenders are traditionally family and friends.

Qualified mortgages tend to be traditional government-backed loans and conventional loans (basically non-government backed traditional loans).

Is it possible to use 401k funds for the down payment on a seller financed deal or can you only use 401k with traditional loan types?

I am currently looking at a few properties that meet the requirements, but they are significantly more expensive than a property with 4 or fewer units that would fall under a traditional FHA loan.

Unfortunately, even Robert Kiyosaki believes that the traditional approach to real estate investment does not work.

I'm interested in rolling over my Traditional IRA to a Self Directed IRA to use for Real Estate Investments.

The requirement that you not personally guarantee any loans taken by your IRA/401k is a corollary of this rule.UBIT/UBTI/UDFI: Traditional IRAs/401(k)s are tax-deferred and Roth IRAs/401(k)s provide tax-free earnings - with regard to "regular" income tax.