Hi Ayyoub-Great question on where to buy a rental in Michigan.When I talk to my investors about buying rentals in Michigan, if you don't have the budget for an Ann Arbor, Lansing is a fantastic market for buying income properties.The price points are very favorable.

And then an accountant has to split the K1 into each individual members' K1s.

I would get connected to a real estate focused accountant just to make sure you stay compliant and your doing this right  

Rather than wasting it or leaving it in a bank account I'm interested in starting my own investment business to supplement my real estate sales.

This is assuming the builder who reviewed your plan has accounted for everything and give you a price that will cover their cost and make a profit in doing so.

The property cannot be valued in the traditional way, which is why I'm seeking a private lender who will value the property in a commercial-style method via the cap rate.Source of down payment funds: Implied equity (refi)Income Source: W2 for both my wife and IGross annual income (between the 2 of us): ~$300kMonthly debt obligations appearing on credit report, plus (if applicable) personal rent and alimony/child support/etc: Student loans, rent, and what exists for this tiny house.FICO: 725Credit issues: noneThanks for reading this far!

Gains through crypto felt uncertain to me but still had a draw, so I decided I wouldn't use more than 5% of my disposable income to gamble (whether on leveraged index funds like QLD or crypto).

They don't consider borrower income. 

I am not sure if this is the right place or not but I wanted some input into any obvious issues with my lease option offers to the tenant buyer that earns plenty of income but doesn't have the cash right now and wants to improve credit before purchasing but would like to lock in the price as our market is still struggling with inventory. 

  * 2-4 unit properties are residential and mainly valued based on sales-comparison, not income.