Did you save up the down payment and get traditional financing through the bank?

Secured hard money, bought and rehabbed a house, then refi'ed with traditional lending.

@Dana Revallo, as others noted, traditional loan products that will get sold to Fannie or Freddie will use the valuation an appraiser assigns, and that is almost always the sales comparison.  

I agree that it's likely long overdue, it hasn't made sense that loan pricing has been better for second homes than for traditional investment properties.

@Luke Farrar sounds like but and hold should be first and maybe you should add flips later.There is a lot less that can go wrong, generally, with a nice safe B class buy and hold that is close to turn key or needs a light value add.

I would buy the primary traditionally, and feel comfortable covering that expense with your income, and then using the excess cash that you got as a gift, to start your investment career.

However, knowing that he will be financing the deal instead of bringing a cash offer I don’t know how I will be getting my fee at the end of the transaction.This might not be the traditional “wholesalers” situation, but I can use my skills and knowledge to be the middleman and get him a deal for lets say $100k and offer him the contract for $105k.

My issue is more of a DTI problem with traditional lending and a new job.

Had I had traditional financing, I would have not been able to pay the amount I did. 

He moved to FL, and closed the franchise, so now I am back to traditional methods.