Hey, @Shannon Schlappi, my group here has quite a lot of experience with subject to deals and owner finance transactions as well. 

@Justine C.In regards to the use of the SEP IRA - You may want to see if you can use the SEP IRA to lend to your sister who can use the funds towards the down payment.Just make sure that the transaction between the SEP IRA and your sister would not be considered a disqualified person/transaction.

Although you'll have higher monthly payments with the FHA, being able to keep tens of thousands of dollars of capital towards future transactions is worth it for a house hack in my opinion.

In Texas, the transaction is sub-2 purchase and warp sale.

I agree with Chris Seveney that seller financed notes will be a dangerous note to own because they are overpriced.Government policy is quickly showing that it wants to eliminate small real estate investing, e.g. the law in Illinois that requires a realtor to be part of ANY transaction, thus curtailing creativity and raising costs.

I would advise you to do at least 2-3 family homes, take advantage of the FHA 3.5% for your multi-family, to use as little money as possible for your first transaction, with the cash flow of your first property you can save for the next property and so on. 

If the middle tile is good, how about filling in the border with an accent tile?

You'll have to pay for the new LLC and the closing, but quit claim transactions are pretty affordable.

@Philip Hernandez, this transaction does not necessarily have to be set up as the safe harbor TIC ruling of 2002-22. 

He bought one earlier this year and the broker made roughly $40k from the transaction.