From a traditional lender perspective, they likely will not see this property in your DTI because it likely won't be reported.

This deal was financed with traditional bank financing (FHA) with little money down.

I’m looking to purchase a home, ultimately an investment property, prior to finding employment, making traditional financing unobtainable.I have about 90k is cash reserves and approached a family member with the idea of loaning out some cash (around 100k) to earn interest, for me to buy a property outright.

Uh-oh, two Mark S. now...

Depending on time frame to rehab - hopefully < 6 months - then you could refinance and get a traditional mortgage to pay them off and not touch the equity in your home.You'd have to crunch the numbers to see if this makes sense for how much you're willing to spend on another investment property. 

Here there is a pretty strong demand for renting by the room which can be more profitable than a traditional lease however more work as well. 

Seems like this could be an easy way to have multiple accounts open but keep things simple/straightforward compared to a traditional bank.

If you're wondering about this you should probably talk to a more traditional lender before moving forward to ensure you are able to qualify for a traditional mortgage on it.

In this event, I'd structure the deal much more like a traditional lender with a fully amortized long term loan in place.

We took a traditional loan to fund 80% of acquisition, put 20% of our own money and raised private money to fund the rehab.