You can also look at conventional financing if you can qualify with income docs, employment history and DTI.

I am looking at buying my first seller financed house.

@Lataw BawknawIf you are using a DSCR loan (very common) to finance, you will a DSCR (debt service coverage ratio) of 1.0.

Some lenders will finance the holding cost, but this is rare.

Im more interested in creative financing and am currently looking to build a team (title company, real estate investor agents, attorneys, etc).

However, where there is a will there is a way with financing.If you'd like advice on construction costs and/or how to finance a deal like that, feel free to message me.

I won't have enough equity in the the first house to finance anything and I don't want to give up my 3% loan, so I need the equity in the new construction to qualify.

Here is how most work:Rates: 10% to 14% (Most Deals are 12%)Terms: 1 Day - 24 Months (Most Deals are 6 months)Fees: 2-5 points(%) of loan amount paid at closing (Most Deals are 3 points(%))Minimum Loan Amount: $50,000 (For loans less than $200,000 we charge $2,500 minimum)Max Loan: 65% of After Repair Value(ARV) 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 10 business days)We have private lending partners throughout the entire United States that cover the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, TN, TX, UT, VT, VA, WA, WV, WI, WY.

Why would financing be tricky.   

With 400k, assuming regular conventional financing, you could get 8 duplexes for 200k each.