I am a flipper and I have borrowed money from a private lender, who I paid loan origination points to as well as mortgage interest.

Lending is not a job for a do-it-yourselfer, and a title company is not the place to get loan documents.

My last two clients closed on houses that became 8 bedrooms rent by room house hacks that cash flow, so it is possible in this market.2) Multifamily - Purchase a 2-4 unit property with 5% down conventional loan, and live in one unit and rent out the others.

You can also consider finding a vacant building and using a construction loan to renovate it like new.Regarding the comment that the current climate to buy is bad- I"'ve been on this forum for some years- And each year someone says the climate to buy is bad. 

Coventional Loan

Coventional Loan

Can someone help explain the balloon portion of the loan?

Review your loan documents carefully.

(Make sure there’s only 1 insurance payment and the correct number of property tax payments per year depending on your area.)You can take the projected next 12 months outflows divided by 12 and add them to the loan dox you got at closing and that’s what your payments should be after you catch up.

I’ve bought 3 other STR’s, all with DSCR loans so that’s how I’d look to refi but not even sure that’s possible out of a bond for deed.