We borrowed $200,000 in private funds and the balance in bank debt that we refinanced upon stabilization.

How much can you borrow from the bank for a mortgage?

@Meg K. my lender does not charge closing costs for the HELOC and yes there will be closing costs for the cash out refinance and most lenders  will only allow you to borrow up to 80%.

Hey StevenJust my 2 cents worth... if it were me, I'd personally be looking for private lending deals and performing notes with good quality borrowers. 

@Chris SeveneyBased on Fannie Mae guidelines, I'm not sure you'd be able to get a conventional loan with this strategy as a primary residence is one in which you the borrower/buyer intend to occupy after closing.Per Fannie Mae:A principal residence is a property that the borrower occupies as their primary residence.

Thanks for the comments, I never borrowed with a private lender in the past, they charge high closing costs and high rates and they don’t do a good job disclosing them up front.

I have four properties and I borrowed money to help buy one of them, simple deal where they put in cash and receive interest only payments till I fix the property and refinance it at which point they get all of their investment back. 

@Brandt Welch borrowed money for a down payment is usually acceptable if it comes from a loan on an asset (like another piece of real estate).  

There are lenders out there that can qualify the property on income and not you as the borrower.

This could be the root cause of another crash if not managed well.The secondary market.A loan is originated with a borrower.