In this case, you will have a hard time, appraisers are evaluating residential multi family properties whether portfolio or FNMA/Freddie by Market Approach and the income approach is looked at to comply with market rents and the debt service works by a stress test on your financials globally with the subject property based on FHA, Freddie or FNMA.

Two years later I have a small portfolio.

I have built a real estate portfolio and real estate management/rehab company from scratch in a 4 year period.

He doesn’t want to own long term, just wants a good return on the money, and I want to build a portfolio of single family houses.What would be the best way to structure this?

I love being a private lender but the fact that it simply increases my taxable income makes me consider shifting some of my note portfolio to multi-family perhaps...You might find this discussion beneficial where similar question is raised: https://www.biggerpockets.com/forums/51/topics/604...Owning notes in your retirement account (especially self-directed Roth IRA or Roth Solo 401k) is ideal since you can have tax-free income for the rest of your life if you utilize one of these vehicles. 

GOALS:Replace my income with positive cash flowHouse hack (or not) in all the places I've wanted to live in the US (and maybe abroad) as a means for growing my portfolio after my income has been replacedDevelop really great relationshipsBuild a system that can work with minimal input from meMaintain frugality (MMM)Change my lifeLongterm - Invest in neighborhoods that need a liftLongterm - Provide shelter for homeless families and runaways

My plan is to do a few fix & flips and move over to the BRRRR strategy to build up my portfolio.

I am looking for a portfolio lender for a portfolio of 4 SFHs in Baltimore.

In 2-4 years I'd like to expand that to include single-family residences and land.GOALS: Replace my income with positive cash flowHouse hack (or not) in all the places I've wanted to live in the US (and maybe abroad) as a means for growing my portfolio after my income has been replacedDevelop really great relationshipsBuild a system that can work with minimal input from meMaintain frugality (MMM)Change my lifeLongterm - Invest in neighborhoods that need a liftLongterm - Provide shelter for homeless families and runaways

My plan is to do a few fix & flips and move over to the BRRRR strategy to build up my portfolio.