At this point, the $250/month isn't going to help or hurt me, so I feel that it is better used this way.I do understand the risk involved with the Owner, however, he is an attorney also and a long standing client of mine, so there is a good level of trust between us.

But as @Ken Rishel stated, you'll be open to regulation as well as the politics involved.

IE some cash  credit and capacity. your to big of a risk.. if you have none of those then its friends and family its charity to get you started 

There are lots of ways to learn more and get involved in the local real estate investor community in NOVA.

You may wish to consider tying up the 4 properties and planning 2 projects involving 2 lots each.

But the other investor also loans the corporation the financing at a specified interest rate and is paid back his loan and interest due, before the profits are split 50/50...ultimately this ends up with the investor getting a greater than 50% share of the profit...but is a bit nicer when segregating out the risk on his capital, vs. the upside potential in the flip. 

If you are willing to take one risk, I don't see why you'd be afraid of the other.

It doesn't work for all, and all should be aware of the risks associated with this, but it isn't a scam in any way. 

I believe you will hear the term on the podcasts for this known 'house hacking'.So the rates you see published are available to the ones with the best credit and the finance institutions deem a safe risk.Now if you buy the house as an investor or non owner occupied your rate will be higher than the published rates you see even if you have great credit because the banks look at non owner occupied purchases as a higher risk. 

HELLO:MY NAME IS TED HILLISON AND I HAVE BEEN INVOLVED IN THE RESIDENTIAL REAL ESTATE LENDING INDUSTRY FOR 20 YEARS.