I'm looking at small multi-family for house hacking but have the following issues with risk and financing.1. conventional lenders require 10+% down on multi-family2. buying the property in my name (to get cheaper financing) and then transferring to LLC (to mitigate landlording risk) isn't possible from the lenders I've talked to (due on sale clauses can be triggered)3.

Does anyone have any ideas or suggestions to what I can possibly do to gain ownership?

Hey Gordon,To be considered a first-time homebuyer, you cannot have any ownership interest (sole or joint) in a residential property for 3 years prior to purchasing the subject property.

Because the girlfriend had no legal right (no arbitration/probate/will from the deceased) the property never transfered legal ownership to grandpa.

@Roman Kozlov also remember that transferring a property from personal ownership to an LLC gives the bank the right to call in your loan at any time and you owe that full balance.

Take ownership of your mistake and learn to do the proper due diligence recommended above😊

He is interested in 50/50 ownership.

Current or prior ownership of real estate: Currently own 4plex in Colorado Springs, purchased in 2012 with 13500 downpayment  on FHA loan and  lived  there for  two years.

Qualification for these loans is a bit more strict, but if you plan to personally occupy the property for at least some portion of the year, and to retain ownership exclusively, then this might be an option for you. 

The previous landlord needed to transfer it to you as it is the tenant's money.