I used a private lender because this property was a "3 Season" cottage on a lake and didn't have heat or insulation, and therefore wouldn't qualify for a conventional mortgage.

Old article but very good info.http://abcnews.go.com/Business/philadelphia-man-forecloses-wells-fargo-mortgage/story?

After the year owner occupancy period is over we will probably do it one more time while we work on paying off the first mortgage and snowballing from there. 

He’s getting 10% interest and gross income/mortgage payment ratio is very high + he’s getting cash flow sweeps every year so that the total loan amount is repaid in 3-4 years.

I have my father's 30 year old contracting company at my disposal, I work directly with an in house mortgage lender at my office as well as a property management company (which I would primarily use on a consulting only basis to begin with) and I have 2-3 options for creatively financing my first few deals. 

I think you should go to a conventional large bank and get a mortgage for this property.

For example, my mentor is an REI and mortgage lender in my area so I do my closings, refi's, etc through him.

After mortgage service, with 25% down, yearly profit is 16,300.  

@Jaysen Medhurst, my FHA didn't consider ANY of the rental income to qualify me for the mortgage.

I would try to find sellers who are open to owner financing or pre foreclosures with some equity where you could take over their payments subject to the existing mortgage.