I'd purchase a second home and fulfill the loan requirement for stays etc.

Generally there are three categories of multifamily investment properties – which will greatly determine your loan options.These three categories are based on the number of units at the property.2-4 Units: While these are “multifamily” properties in the sense that there are “multiple units” – you will generally have very similar options for financing to traditional residential loans on single family rentals – think the traditional 30-year fixed rate conventional option or DSCR Loans – and the coveted 20% down payment option too.

Do you or someone you know do these loans ? 

If you are new new I would do what others have suggested and house hack, buy a 1-4 unit with an FHA loan, live in one, and rent the others, I wish I had done this when I first started. 

FHA loan How did you add value to the deal?

Thus, when the loan comes due, the property could easily be worth less than the loan amount, leaving the owner with very few options, none of them good.  

So in this case if you closed the purchase with a DSCR loan, assuming a  Straight 5 Year PPP structure, On year one if you do a Cash Out, the DSCR lender will penalize you with 5% of the loan amount for paying off their loan early. 

Got a deal on a house$150-170kRealtor gave estimate for listing at $199kArv is $285-$315kTrying to figure out how to swing it Scenario : guy I know will front the cash to me to buy it for a cash deal but short term loan basically. 

I may not have enough to win a court case but I have emails of him needing certain documents like the BK balance and loan number which I found before it was too late and saved the deal because I knew it was public record Quote from @Marcus Auerbach: This sounds like a real dumpster fire.

Construction loans are different than mortgages.