It's definitely possible but the bank would probably also provide some pushback as they want to see the operator with skin in the game.

Difficulty Selling Properties to Free Market again, NOT correct. most investors want sec 8 tenants in.

@Manny Martinez FHA monthly mortgage insurance is typically 0.85% of the loan amount, so you are effectively already paying the rate you were quoted, $200 per month on an $80,000 loan amount would be about the equivalent of a 3% interest only loan, now factor in the difficulty in finding a 2nd mortgage in todays rate environment that low and assuming the refi rate you are talking about is a fixed rate, your $200 extra per month is paying down the balance of the $80k further reducing the effective rate you are paying on the $80k, all while paying about the same effective rate on your existing balance when you combine your rate and MMI... seems like it is a good move to me or at least better than finding a 2nd mortgage.

It's far harder to qualify for conventional loans if you're a business owner or self-employed and that equals opportunity.When I look at doing a potential owner finance deal the most important thing for me is skin in the game. 

I started charging refundable fees for viewings (which wouldn't work for an apartment complex, but if a stranger wants to walk through my house, they need to have some skin in the game!)

The gurus” selling mentorship’s and “canned” programs to a inexperienced investor oversimplify the strategy; ignore the difficulty; incorrectly claim that the education they provide is sufficient for success; lie about their own qualifications and experience and success; belittle “real” business/financial/real estate education and provide a totally unrealistic picture of lifestyle, effort, and chance of succeeding.  

You will need to grow a tougher skin regarding your ability to say no to tenants.  

:) Well, for starters you'll have difficulty being successful if you start from a place of fear.

Having no skin in the game is just not viable in this market. 

Hey Rajul, If you are having difficulty qualifying for both STR and LTR rents, you may want to consider a No ratio loan.