My wife needed funds for her business and I extended 2 independent loans by refinancing our home mortgage.

It has no mortgage, pretty good condition, and has so much opportunity.

The most important thing is having the appraiser (lender will contact) appraise your investment property with rents above the mortgage, so the lender knows you will be able to pay them back.

Step 3- at the balloon period - 3-5 years - tenant will assume the mortgage balance and transfer ownership of the home. 

you are paying them to pay the Mortgage?

For LTR in my experience there is a passionate minority of people who will be very uncomfortable with it due to personal beliefs, but the majority will not mind so long as you word it properly...

The appraiser will complete the appraisal and fill out the 1007/rent schedule which will calculate the common rents in the neighborhood market.Those rents will be used to show if the new mortgage PITI payment will debt service itself.

One can’t simply bring investors and capital to the deal unless one has the proper securities or dealer license. 

Keep in mind that ALL mortgage interest is tax deductible. 

You just need to get specific on a certain city in Texas and narrow down the areas that are properly zoned for the flex space inside that area.