We'll do the traditional FHA so we get in with a low amount down and then live there for the required year while fixing it up and then buy and move into our next Duplex.My wife and parents will be the ones on the mortgage for this first property as I just started a new position this week.

This is typically the B or C neighborhoods where houses will appraise for a traditional loan.

I was a “traditional Tom” in the sense of my first deal in downtown Atlanta.

The town/city has changed tremendously in the past decade and there are a lot more "new" multi-unit buildings aimed directly at students - 2-bdrm to 4-bdrm units where each bdrm has its own bath - which are competing with the "traditional" student houses in town.  

I've found two different options from banks.The large neighborhood/state credit union:Good rates 4.25% for a 30 year fixed mortgage65% LTVThey control an escrow account for taxes and insuranceI have to get the building out of the LLC for the refinanceCould take 30-60 days to close, I'm guessing on longer because they probably don't like all my rental income and financial odditiesCan simultaneously do a loan for my next primary home purchaseThe Ultra Local Business Bank:They offer 3 or 5 ARMs only, amortized over 25 years with a 10 year balloonRates at around 5.5%75% LTV and like that I can get more out than the other bankThey loan to LLCs, don't need to change anything with thatThey don't hold an  escrow accountPortfolio lender and keep locally within their 3 or 4 branches3-4 weeks to close and they totally understand my rental income and financial situationDon't do primary home loans, I want to use a portion of the proceeds for a primary home downpaymentIt's a 4 plex so I have the option for a traditional conventional loan, but also a business commercial type loan that is made for investment properties.

@Thomas Murray We have the cash needed to complete the VA loan(0% down) Just paying for the appraisal and splitting repair costs, We also have the money to fund a traditional mortgage(20%+) for another property in Alabama.

Traditional conventional financing.How did you add value to the deal?

All of this is valuable information, that take the traditional REI years to gather.

Traditional non-owner occupied 25% down financing for this oneHow did you add value to the deal?

The problem your friend faces is that a lot of traditional lenders won't work with borrowers towards a loan modification unless they are already not paying and then it's not guaranteed that they will anyway.