Not to get off topic, so I'll say it this way, a HML needs to realize that there are two issues behind the regs, your competetion and consumer protection issues.

Seller financing and creative financing is very common among investors right now because of the way most deals pencil out with traditional financing.Honestly can't go wrong with most places along the Wasatch front.

He might  consider  selling to you and saving some funds in his  bank and  using a reverse mortgage to  purchase the proeprty .   2)  for your side -if you need to keep the down payment low - using the  VA loan is a great idea ...already having a VA loan outstanding you might have an issue  using another VA loan . 

This shouldn't be an issue for most DSCR lenders.

Maybe that lender has some sort of weird requirement regarding where the funds need to come from, but typically a HELOC isn't an issue....

One issue i will run into is funding since alot of dscr loans do not fund in rural areas. 

A full-time position just hasn’t come my way yet.I recognize that in theory, monthly mortgage payments shouldn’t be an issue since I’ll be househacking, I would just rather comfortably afford the mortgage if everyone somehow decides to move out at one time.

https://www.biggerpockets.com/...12 Frequently Asked Questions (And Answers) About DSCR Loanshttps://www.biggerpockets.com/...8 More Commonly Asked Questions and Answers to DSCR Loanshttps://www.biggerpockets.com/blog/eight-questions-and-answe...What Documents Do You Need for a DSCR Loan?

Of course they have no issue with selling the liens and collecting money from investors, they also have no issues with charging a premium that is non refundable and the county keeping the money.  

Renovating and renting out a basement is a common approach to house hacking.