So essentially my w2 income would need to be able to qualify for a quarter of this loan if I was to occupied one of the units would this sort of loan be done at a normal bank or what would I need to do?

My question is how and what terms that are reasonable do you typically use?

Private and hard money lenders either are or have typically been investors themselves so they know how it is.  

Sounds like you are close to the University of Tulsa, is your typical renter a TU student?

We typically see first distro going out at 90-120 days.  

This is essentially what banks do.  

With $16K available, that limits you to an $80K house (which typically requires 20% down for an investment property mortgage).

There's a narrow band in the middle with good rates that you typically see advertised, then a "high balance" range where they aren't so good, then a "jumbo" range where they get better again (sometimes we find ways to shove "high balance" loans into "jumbo" for that reason).

Since you're essentially looking to "house hack," FHA loans allow for you to use 75% of the expected rental income from fair market rent as determined by an appraiser on the non-occupied units as qualifying income. 

Having said that, you must be aware of the typical tenant and what they will probably do to your property.