You're running into a Fannie Mae guideline.

As you described it, that's the math for owner occupied 2-4 unit properties (note: Fannie Mae does not acknowledge the existence of "owner occupied investment properties" that everyone talks about.

It takes time to find the right persons to help you meet and grow your real estate portfolio.Being intentional, having a strategy you can find a property and look for the best way to finance investment property.Fannie Mae/Freddie Mac no longer have seasoning requirements. 

If you google Fannie Mae Notes online that would give you an idea of what a promissory note would look like.

If you finance with a loan that will be sold to a GSE (Fannie Mae, Freddie Mac...) this transfer is not forbidden as long as the underwriter understands the transfer is after your loan is funded (closing attorney records the D-T first, then the deed transferring asset to the LLC).

@Pavan Gupta Fannie Mae Homestyle allows for construction of detached ADUs.

Hi all,Danbury meetup scheduled for Thursday August 11th at 630 pm at Molly Darcy's Irish Pub in Danbury. 39 Mill Plain Road.

Fannie Mae and Freddie Mac are not friendly to investors that are trying to scale.

Re: second part of your post - Many conventional mortgage lenders do not offer it, but Fannie Mae technically will allow you to purchase a home for a disabled or unemployable parent or child to live in under more lenient guidelines.

You cannot hire a property management firm for the first year "cannot be subject to any agreements that give a management firm control over the occupancy of the property" this is the verbiage from Fannie Mae.