There are pros/cons for doing so.You transferred items that may be considered passive to active income.

If lender's experience is a rather integral part of the transaction and it's on-going operation it would make sense to have a premium over just a passive capital rate. 

I have already gained so much knowledge from the BP community and I have only scratched the surface. 

Depending on the sweat equity I gain I may sell the house or use it as my first rental property.

I would recommend, depending on your level of experience, attending a few Real Estate Meetups in your area and sticking your head in the forums for a while to gain as much knowledge as possible before you pull the trigger on anything. 

What are you doing to gain such success this early and if you were to double down on those efforts now, how many units can potential grab by year end?

@John Franczyk on the tax front, there is no expense you cant write off, or business tax benefit that cant be taken weather you are an LLC or a sole proprietor historically, its all pass through anyway, for example if you have a HELOC on your personal home, and use the money for business purposes, the interest and expenses are deductible as a  business expense. at the end of the day it makes no difference, unless you are avoiding  SE and filing as an S-Corp, but thats for active income, not passive.

So here is the question: Would I have to pay capital gains on this money I receive since it technically isn't "profit"; it was money I SPENT and am merely just getting back.

ORDo you think it is better to sell and invest that money in something that would gain interest or profits over the next 7 years?

To avoid moving my large family more than once, I want to know if there are any 2nd/jr lien lenders -OR - investor/venturers that would like to invest in the down payment requirement, in exchange for part equity ownership as a passive investment?