We are planning our first investment to be traditional mortgage to get our feet wet and gain a solid grasp on that process.

My theory is that the risk of losing the $100 just doesn't outweigh the cost of getting title insurance and going the traditional route. 

And at the end of the day you received non-taxable cash in the form of additional debt.Your source of financing whether it is a bank, traditional refi lender or the former owner would be irrelevant.

Rents for the units vary from $1100 to $1300 or more per month.I am considering a hard money loan to pick up the property and rehab, then refinance with a traditional loan taking advantage of the spread in the ARV.Does this sound logical?

Why would you want a basement rental unit instead of going with a traditional side-by-side duplex option?

Apparently it was the tradition of old school builders to put a coin under the entrance to the home to bring the clients good fortune.

I have recently started a traditional 401k with a small chunk of my W-2 income contributing.

Could I get a traditional lender to finance the property at 70%LTV?

I know its not traditional, but, we are equal share.  

I have already hired the services of a State of Maine Registered Architect who specializes in energy efficiency and together we will be collaborating on a traditional based design.