I would be amazed, shocked even, if a traditional financial institution was willing to lend on a non-habitable asset up to 80%. 

The alternative is to set up a self-directed IRA, or better, a truly self-directed Solo 401k plan, invest in alternative assets, and then do the conversion.

There are asset protection companies who make lots of money off this - I talked to one who said it's $13,000 (for 4 properties) to set up layers of protection then annual fees after this. 

When that’s not enough they go after personal assets, if your rental is in your personal name it’s targeted.

If you analyze everything right, observe your mentor and take your time to get the right asset, it will be fine.

Unfortunately most lack the balance sheet to obtain favorable financing, can't afford to put any skin in the game and fail to make a compelling reason for why the investment makes sense or to justify the structure they are seeking.

At the same time I have my current home as an asset to rent out if my HOA permits it.

Most lenders sell their loans out.Nobody wants a loan where the asset is underwater every month.The real question is, why is a property worth over $1M only producing $4,000/mo.You should consider raising rents as this seems significantly below market.

Whatever you buy you likely won’t keep it down the line as you better define your investment strategy, so my advice is to pick an asset that’s going to teach you the most in the quickest amount of time.

The yield of an asset is a reflection of the risk of the asset.