That was a great question @John Burtle, I'm getting ready to do the Hard Money for a project, I could go the conventional way but I wanted to do HM to start a track record with these lenders so at a future time they will know me...

Think it's best off for the sponsor to be establishing a solid proof of concept by having an established track record.

@Sherry Justice These are all great questions and depends on the market.

If its an occupied foreclosure where the bank "knows nothing" and there are "no interior inspections - do not disturb tenants", at least visually inspect the exterior for signs of deferred maintenance and look for signs of occupancy like an empty mailbox @7pm, lights on, car tracks in snow, prior to making your offer. 

If you have done any past deals, show them your track record and that will instantly build credibility.

Additionally, I've also been wondering, rather than using equity to purchase a multifamily, should I be using the equity in a method I've heard to pay down and fast track the payment on principal?

Have tracking of all income and expenses in report form that a few trusted others can help with possible expense reductions and an increase of income to help your business grow.  

Spend some time on Bigger pockets reading and listening to podcasts and you'll be on the right track. 

Invest with the right company with stellar track record and you will thank yourself one day. 

Kimble I think you are on the right track to house hack.