Because of this, he stated that they would never get approved because the qualifications are much more stringent than FHA and the like.

I used to be part of an S-corp in a previous business (primarily because LLCs either weren't around or not popular back then) and when setting up both my current 'day job' business and my buy and hold real estate partnership, my accountant favored the LLC over the S-corp.I think his main reasoning was the increased paperwork, more stringent requirements, and inflexibility of equity or profit splits in the S-corp.I think, but an not sure, what you will hear from others is to form a different Joint Venture for each property of each 'partnership' you form that could own more than one property.Dan Dietz

The FHA 90 day rule was implemented a long time ago, but has now been waived -- this means that you no longer need to wait 90 days to resell.

I will be implementing some of Brandon Turner's advice in an article he wrote.

The Washington State Housing Finance Committee is a governmental agency that assists in implementing federal programs in our state.

@Bryan Scott - I like this approach (because it makes sense for her) and am hoping that now that she's realizing the situation she's put herself in that she will be more receptive to implementing some (or all!)

To clarify, when I was talking about tenant council and it's impact on investing in that city, I was referring to stringent laws towards LANDLORDS, in other words, if the city is tenant-friendly (and has a strong tenant council), it can take the landlord MONTHS to evict a tenant, if the tenant does not pay rents...

Currently, I use this strategy with single family properties and will implement it with multi family as well.

There are probably private lenders, too, but I am not aware of any HMLs at 9% with 1% origination.To my point about rates improving, we are implementing a new program (in Texas for now) with rates as low as 7.75% and origination as low as 1.5%; however, it would be 85% of price (as opposed to 90% and would max out at 70% LTV as opposed to 80%). 

Since these are still under progress construction, banks are pretty stringent on giving out loans, let me know if this is not the case.