Even then if they don't know anything about real estate, that might not help much.

You can house hack the multi family for a year and then move out.

Private equity and Vc would be more of a pitch if I'm not mistaken, but it would then boil down to the same information we'd want to see, the hard details.

Just have your return done professionally and then you'll see how its done for future use, in this situation.Sorry.

I then bought a foreclosure's and sold it  through a realtor, and now I’m in a live in flip.

Then why am I paying you a 'lawyer's' fee? 

They want to lease the property from you for $X and then lease it out to someone else for a higher price and generate a profit.There are hundreds of posts about why this is a bad idea.

I was talking to an investor who told me if he bought my property, he would borrow money from a hard money lender for a few months and then refinance with a regular lender. 

If you could find a duplex property (or a single family house that could be turned into a duplex--check any HOA restrictions first), or a "fixer upper" to live in, that could be a better use of the equity you have in the rental house.If you run the numbers and decide it makes sense to sell the rental house (check with your accountant, figure out closing costs to selling and buying) then you'll possibly have more money to put towards a primary residence.You may want to check the neighborhoods that fall in the school district you want to stay in and look in "under appreciated" areas...maybe not the A class neighborhoods, but ones that have potential of becoming "improved".While I understand your desire to stay in a particular school district, it's not the end of the world to consider other districts if they will allow you to build real estate/family wealth that will put your entire family tree in a better position."

If, however, that is part of the beginning balance of the earliest bank statement, then they will consider that "seasoned" usually and it likely won't be considered borrowed funds.