The idea would be for someone to loan me the down payment, I pay them interest the whole time it clears my account, then during the rehab and once the refinance is done, I will pay them back their money. 

The second sale, of the homes that didn't sell at upset were about a year later and were free and clear so that meant that the banks showed up and made sure the bids covered their debts.Anyway, there is SOOOOOOOOO much more to it.I would recommend the following :1. 

Clearly, this isn't a legit wholesaler or investor of any kind.

They have more skin in the game then you do.Make sure you get clear title.

The instructions are not clear on how to deal with these situations.I just thought the purpose of line 2 was to determine percentage of personal use.

More properties than not won't cash flow with a mortgage (and just to be clear--just because a property will cash flow with more cash down doesn't mean it's a deal... you can make any deal "cash flow" with no mortgage). 

Thanks in advance for any feedback, trying to be clear, hope this isn't too cryptic!

Just to be clear with the intent of my post, this is not primarily a financial decision so much as it is an opportunity cost decision.

From here is where there are several choices:Stay put in the primary residence, a single family home, and purchase another property (SFR) to rent This is, slightly, my option of choice I will have a place to live free and clear, and wiggle room & safety in case anything should go wrong.Rent the primary residence, and finance another primary residence Sell the primary residence and split the equity for down payments on both a rental and primary residenceMy least favorite optionIt incurs the most debt and risk. 

If the owner gets in trouble with the IRS and they put a lien on the property they are still the owners and you would not get clear title.