Here's a few blog posts to get you started...An Introduction to Note InvestingElements of NPN Investment EvaluationEvaluating NPN Exit StrategiesDue Diligence for Notes - Tax and TitleDoing the Math on Mortgage Notes

The owner could sell the property with you signing a promissory note and record a mortgage to protect their interest.

As of now I'm very interested in house hacking with the end goal being to live completely mortgage free by earning enough from tenants.

I’m working with an aging family member who currently has a reverse mortgage on the property.

I'm betting about 80k or so mortgage aside.

It's good to keep the 401k to show reserves to the bank in the future in order to qualify for more conventional mortgages.

Would love to do a 30-year, but I need to have it in an LLC, and even though I could switch it over after we purchased, I don't want to risk anything that would be construed as mortgage fraud.

The home is owned without a mortgage.

Some numbers for your perusal:Purchase price: 70kLand value plus shop 35kMoney this house could easily eat before all is said and done in fixing it $70KValue if we poured $70K into this house  $120-130K todayValue as-is  $55KRent the house could fetch if we dropped $5K into it  $800/moExisting mortgage $622/month pitiCould refinance to a piti of $500/monthI ran a scenario where, if I dropped $10k to stabilize the condition of the house and $25k to convert the garage to a studio apartment (rent for $300), it would be around 10 years before I could break even.Thanks for any advice or insight you can offer as you play the what-if game with me.

I took out a $25k mortgage and sold 2 cars to get started.  7 figures of business later its definitely paid off.Regardless of who it has and has not worked for, this is a very personal decision with no wrong answer.Is your desire to create a life you want greater than your fear of losing that money and more?