There is no downpayment required on refinances, but if your current loan balance is higher than your proposed new loan on the refi, you may be required to come up with the difference. 

Find someone who has built their investment portfolio the way you are proposing to.

This morning I read his detailed proposal and see that the 40% return is over a two year period.

I propose we get together either tonight or tomorrow night.

I have known a few investors - all BPers - who did what you're proposing and each one failed but only after a tormenting process of resolution on every front. 

The seller has proposed "Contract for Deed" financing, which appears to be a promising option since it offers a lower interest rate compared to conventional financing.

I am guessing that the difficulty of house hacking in Utah is high-interest rates, low inventory, and "high prices".The solutions I would propose would be seller financing, and finding off-market deals.I have continued finding more than enough deals to keep me busy in my space and know that the deals are out there.

The local bank is proposing a 5 year balloon loan at 4.5% that is amortized over either 15 or 20 years. 

Our idea is, we want to have as much data on each proposed site listed for bid prior to the auction. 

I'm not attempting to give accounting advice but I think it's important for people to carefully consider the nuances of the OZ regs that don't exist in the 'normal' real estate world.The Final Regulations retain the rule included in the Proposed Regulations limiting the ability of a partner to receive debt-financed distributions while maintaining its qualifying interest in a QOF by applying modified disguised sales rules to debt-financed distributions from a partnership QOF.