Stated that I would need to borrow at least 75k for him to work with me.

When it comes to money (especially lack of) and a person's home, some borrowers will fight hard and some will play dirty.

I learned a lot about what to do, and what not to do, and how to network effectively.I also have been fortunate to have input and training from some of the absolute top people in the business which further reinforced my choice of multi-family. 

I do not rent to families, prefer seniors, so your plan to turn it into a 2 bed would be my choice.

I will disagree that "licensing is easy to get," as the NMLS test is hard to pass AND even if you do, your entity must now begin quarterly and annual reporting to the NMLS System.Also, under Dodd Frank, if the above apply, you are probably required to document the borrower's ability to repay, and service the credit agreements/loans under the strict Dodd Frank loan servicing rules. 

I applied to borrow 230k Equity loan from a credit union, but they want a statement explaining what the money is for -other than paying back the debt.

I worked at a bank where about half of the 5+ unit borrowers were sole proprietors/revocable trusts.

You cannot borrow the funds for the down payment.

I prefer to put a little more down for a better return and buffer, but it is a personal choice.

I told her I'd be paying the interest but she said she doesn't make money that way because the interest is paid to the bank she borrows the money from.