I always stayed away from Section 8 at that time and did Zero down purchase doing 80/20 loans and/or interest free loans as well. 

I am a Loan Officer in San Bernardino County, and the real estate agents I work with are always coming across solid deals here and there.

you'd use the DSCR loan to pay off the hard money loan.

I will note that some of the information on here will be different for you especially when it comes to loan products and requirements so that is something to keep in mind. 

You might have several different loan options available to you depending on your needs (acquisition + rehab).

He will likely keep the larger of the two social security checks plus everything else that is stated in her trust.3) Keep in mind as you apply for loans, lenders will count this property towards your debt to income ratio.

I would also carry the loan and establishing a penalty for early payoff (how much penalty?) 

Purchase price: $50,000 Cash invested: $16,000 Sale price: $127,000 Purchased with a 75% loan for cash flow.

However, the other friend (who is a loan broker) said it's better to do a note, so that I can refinance as a rate change in 2 months.

New LLC will be buying a property with a commercial loan.