Now, even after spending trillions of dollars, our major institutions are broke (still only in business due to funny money being pumped into them); many of our largest industries are broke (again being sustained by money printed out of thin air); Americans are over-extended; housing prices continue to plummet; layoffs are accelerating; and the government has just gone on the biggest spending spree in all of recorded history.

If you are really looking for advice, listen to them because they will not steer you wrong.BP has a great podcast where they interview a lender, who tells about how his lending institution reviews the property to determine if they will make the loan.

It's a loan that is made by a lending institution (bank, mortgage company, etc) just as any other but instead of the originating institution selling it to someone like Wells Fargo or Bank of America through Fannie or Freddie, they will keep it in their portfolio of loans, hence portfolio loan.  

REOs, correct me if I'm wrong @Wayne Brooks, are given to the listing agent of choice for the lending institution.

They are hands-off, institutional grade real estate investments, and they allow you the option to diversify.

@Mike KeenanFollowing are the similarities and differences between the solo 401k and the self-directed IRA.The Self-Directed IRA and Solo 401k Similarities Both were created by congress for individuals to save for retirement;Both may be invested in alternative investments such as real estate, precious metals tax liens, promissory notes, private company shares, and stocks and mutual funds, to name a few;Both allow for Roth contributions;Both are subject to prohibited transaction rules;Both are subject to federal taxes at time of distribution;Both allow for checkbook control for placing alternative investments;Both may be invested in annuities;Both are protected from creditors;Both allow for nondeductible contributions;Both are prohibited from investing in assets listed under I.R.C. 408(m).The Self-Directed IRA and Solo 401k DifferencesIn order to open a solo 401k, self-employment, whether on a part-time or full-time basis, is required;To open a self-directed IRA, self-employment income is not required;In order to gain IRA checkbook control over the self-directed IRA funds, a limited liability company (IRA LLC) must be utilized;The solo 401k allows for checkbook control from the onset;The solo 401k allows for personal loan known as a solo 401k loan;It is prohibited to borrow from your IRA;The Solo 401k may be invested in life insurance;The self-directed IRA may not be invested in life insurance;The solo 401k allow for high contribution amounts (for 2016; the solo 401k contribution limit is $53,000, whereas the self-directed IRA contribution limit is $5,500);The solo 401k business owner can serve as trustee of the solo 401k;The self-directed IRA participant/owner may not serve as trustee or custodian of her IRA; instead, a trust company or bank institution is required;When distributions commence from the solo 401k a mandatory 20% of federal taxes must be withheld from each distribution and submitted electronically to the IRS by the 15th of the month following the date of each distribution;Rollovers and/or transfers from IRAs or qualified plans (e.g., former employer 401k) to a solo 401k are not reported on Form 5498, but rather on Form 5500-EZ, but only if the air market value of the solo 401k exceeds $250K as of the end of the plan year (generally 12/31);When funds are rolled over or transferred from an IRA or 401k to a self-directed IRA, the amount deposited into the self-directed IRA is reported on Form 5498 by the receiving self-directed IRA custodian by May of the year following the rollover/transfer.Rollovers (provided the 60 day rollover window is satisfied) from an IRA to a Solo 401k or self-directed IRA are reported on lines 15a and 15b of Form 1040;Pre-tax IRA contributions on reported on line 32 of Form 1040;Pre-tax solo 401k contributions are reported on line 28 of Form 1040;Roth solo 401k funds are subject to RMDs;A Roth 401k may be transferred to a Roth IRA (Note that from a planning perspective, it may be advantageous to transfer Roth Solo 401k funds to a Roth IRA before turning age 70 ½ in order to escape the Roth RMD requirement applicable to Roth 401k contributions including Roth Solo 401k contributions and earnings.)

The due on sale clause came about from the Garn-St.Germain Depositorty Institution Act of 1982, now that's 34 years ago, how many 35 year mortgages were made in 1982?

I shopped for which institution I would use years ago and found my credit union that doesn't charge me any fees, logs in a comment in which building and unit paid, mail me the receipts, and it works quite well.

There are portfolio lenders and other institutions that will do this. 

Based on your projected cash flow, you can set a purchase price based on your desired returns.Also, keep in mind that the property will not qualify for institutional financing.