There are loans where you can get the rehab dollars in the same 30 year loan and then the debt is all on the rental property, not your personal residence.

So my understanding its more complicated than residential loans..1) Debt to service ratio should be more than 1.2...What does it mean?

Really no point playing in Austin if you're $450,000 in debt and have a credit score of 502. 

Is it possible to pay off their initial debt and then set up a sub2 or owner financed option?

Eliminate all extras in your life so you can get your first down payment and closing costs. 

Is it possible to pay off their initial debt and then set up a sub2 or owner financed option?

want to know if this is too good to be true or if this 3.5% is on top of some other rate. i really don't know much about this. and also i only make 70k a year with no debt is it possible to qualify for 500k with such little income?

Wish they could own a home, but aren't ready yet for whatever reason (no down payment, debt to income ratio too high, etc.)Duplex: Not too much different than a single family home, as you're only sharing one wall, a fence, and a driveway.

If the deal fell through with the agency debt then it probably was a good thing.  

want to know if this is too good to be true or if this 3.5% is on top of some other rate. i really don't know much about this. and also i only make 70k a year with no debt is it possible to qualify for 500k with such little income?