(d) A public or private water supplier shall not impose a lien against real property to secure unpaid charges for water furnished unless the owner of such real property is the person who incurred the charges and shall not deny water services when such a lien has been extinguished.

We were able to finance our first two deals with a line of credit agreement we made with a private investor at a very good interest rate.

If you are planning to use Fannie/Freddie loans for your next residsntial property (which are the best finacing vehicles upto 10 loans for single and 20 for married couple) no lender will allow you to close and take the title in the name of an LLC.Only commercial loans or private money and a few other types can be closed in the name of LLC but not for Fannie/Freddie reaidential conforming loans.People take the title in their own name, setup a single member LLC and then transfer the title into the LLC

Or is he interested in lending money privately?

. - I'll send you a private message - I would love to hear more of your story. 

My question has to do with qualifying for hard money/private money. 

Also, since it's a private sale from my friends family member.

It's easy to identify the private note holders from the institutional lenders.

It's going to be very tough to finance this with $0 down through a conventional or commercial lender.Your best bet is to find private money to put up the $470k for acquisition + rehab and then refinance once the property is fully stabilized and pay off your private money lender.If you get rents to $8k you'll be around $48k NOI so at a 7% CAP the property would be worth $685k.At a 70% LTV refinance you'll pull $480k out to pay off your lender/closing costs and have $0 into the deal.This is obviously assuming the seller is carrying anything above the $400k as you had alluded to.Also I don't know the going CAP in your market so this is all just a hypothetical BRRRR example.

We do not currently have the funds to absorb a failure of the heating system, but there's enough income to budget 10k annually for capex and still hit a 10% cap rate, so it's something we could remedy within the first year or two.I reached out to a business contact and asked if he would secure contingency funds in exchange for a percent of AFFO (basically, we'd pay him a portion of the income in exchange for the right to use him as a private lender in the event that one of the systems failed before we replaced it).