Also factor in if you will be refinancing and rolling any costs back into the loan if you're looking at ROI.  

I'd purchase a second home and fulfill the loan requirement for stays etc.

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

FHA loan How did you add value to the deal?

Do you or someone you know do these loans ? 

Thus, when the loan comes due, the property could easily be worth less than the loan amount, leaving the owner with very few options, none of them good.  

I may not have enough to win a court case but I have emails of him needing certain documents like the BK balance and loan number which I found before it was too late and saved the deal because I knew it was public record Quote from @Marcus Auerbach: This sounds like a real dumpster fire.

So in this case if you closed the purchase with a DSCR loan, assuming a  Straight 5 Year PPP structure, On year one if you do a Cash Out, the DSCR lender will penalize you with 5% of the loan amount for paying off their loan early. 

Got a deal on a house$150-170kRealtor gave estimate for listing at $199kArv is $285-$315kTrying to figure out how to swing it Scenario : guy I know will front the cash to me to buy it for a cash deal but short term loan basically. 

Construction loans are different than mortgages.