3) If I can find a private money lender to do a 2nd mortgage, they will need a high interest rate.

There are those that will tell you they can do something up front, then proceed to take 45 days to close and ask for more documentation than a Fannie and Freddie loan.Then there is those that act as private money and can close in 5 days!

Along with the FHA loan, check out the loan from the Neighborhood Assistance Corporation of America (NACA).NACA was formed in 1988 and provides an affordable option for potential first-time buyers:✅ No down payment✅ No closing costs or fees✅ No mortgage insurance✅ No consideration of credit score✅ Below market fixed interest rateThere are several requirements to be eligible, starting with attending one of their workshops.https://www.naca.comI wish you all the best.

When you get a loan that is recorded as a mortgage, a lender will want that money to "season". 

How should I best find private lenders who would offer 8% annualized with payment after? 

We have also flipped homes, manufactured homes, and done private lending in the past.

The cashflow goes up every year as the mortgage is a fixed expense but rent increases at least with inflation and much faster in certain areas.

I'm interested to hear what other experienced investors say, particularly along the lines of private money.Dave 

I am a flipper and I have borrowed money from a private lender, who I paid loan origination points to as well as mortgage interest.

.- I could easily put down a cash down payment and given my wages in Los Angeles, if need be, pay the mortgage when it is not being rented.- What are the potential problems other than not being there in person 24/7?