Our overall goal, like many on BP, is to achieve financial freedom and retire (i.e. not working traditional 9-5 jobs) in the next 5-10 years.We both want to get into real estate investing and after much thinking, debating, and late night discussions there are a few decisions we could use some advice on.1.

Negative #1, you need two years of 1099 income proof to qualify for a traditional type home mortgage. 

RIETs don't traditionally take commodity risk.

Subsequently have purchased >18 more doors through traditional means.

Good economic prospects, decent rent to buy ratio (notwithstanding the current housing bubble that has put a bit of a squeeze on traditional leases), and most importantly, properties available for low, low prices.

Traditional financing, hard money?  

Is there another creative solution to funding the rebab portion of this REO deal using money we already have in 401k, traditional and Roth IRA?

Leverage other people’s money at a low interest rate without actually borrowing their money so they can continue to earn a high interest rate on it in the stock marketI’m doing an LMA for the down payment and traditional 30-year fixed mortgage for the rest.

Significantly more to the point that if he had gone with a traditional realtor, he would have come out on the winning end of the deal.  

Traditional mortgage How did you add value to the deal?