The other benefit of converting it to a mortgage is that it will be more valuable if you resell the loan.

Non-owner occupant loans are typically Fannie/Freddie loans on properties 1-4 units, property titled in your name, you are signing the loan with verification of YOUR income and financial status.  

Since we are hard money lenders most of our loan requests come from commercial mortgage brokers.  

I have a property manager actually do the showings, but any issues like plumber , electrical is a phone call away.The only challenge is it's a commercial loan, which requires more down, higher rates and shorter terms. 

Yes there are loans specifically for STRs if you need any help with that let me know.

If a loan gets called, my end buyer is totally screwed because I don't have the resources to pay the bank or refinance.

If I take over this loan through a subto purchase, does the tax exemption remain in place or would I have to start paying taxes?

Hey Mary,Buy a house as a primary residence with 3% or 3.5% down using a conventional or FHA loan and then get a roommate to cover part of the payment. 

Car loans eating up a huge amount of income no. 

Let me here what you would do with the scenario.Purchase Price:40KRehab: 40KTotal Loan From Lender after Rehab: 80KARV: 130KFair Market Rent: 1,200 Mo.If this was your very first purchase, with a goal of wanting to scale, and build a portfolio based around LTR, and Fix and Flips.