I just found myself in a strange situation and maybe a wonderful opportunity. I am 22 and I have zero experience in owning rental property. I have been saving up money to finally make my first move into real estate, but the thing holding me back at this point is 2 years of w-2 in order to get an FHA loan. I have 20k saved on my own over the course of my life, mostly through random short jobs and never spending money.

Tonight I went to a local real estate meetup and met cool people, talked about a few different things, but when I got home I told my Grandma about how I want to be a landlord, and do a House hack. I told her about how since most of my income until the past few months has been saved through my life with no w-2, I can't start my dreams for another couple years through FHA means. Suddenly she didn't hesitate to say she would loan me 100k, or anything for that matter. I asked what rate and she just threw out 5%, with a balloon on the end for the full loan, but really she said "whatever would make it a great deal for you" (I don't want to just take advantage either, but a good deal is a good deal. She said she doesn't care to make lots of money anyway and its just sitting there.)

I thought It would be sweet to do a BRRRR on a 100k property and pay the 5% a month plus the balloon back in full in that two year window, but I was like there's no way I can even find a 1 bed 1 bath HOUSE for 100k in my area, and looking on Zillow/realtor I was right. They are only mobile homes on rented land, and I don't think I want to get into all of that mess, especially with a BRRRR and as my first deal. It scares me.

Anyways, my main questions are based upon a hypothetical. I believe I can find some pretty nice multifamily units in my area for 350-500k. Is it possible for me to do something like take a 20-30k loan (at 5% interest) from my grandma combined with my own 20k in savings (40-50k total) to use for an FHA down payment, closing costs, and needed repairs plus have cash in reserves? How would a bank (or wherever I get an FHA loan from) react to this? Remember I still don't have 2 years of w-2 but does having her cover the costs make a difference?

For extra details: Her loan would probably end up being a 5% interest rate for 2 or 3 years and a 20-30k balloon at the end of the 2 or 3 years. She really is letting me set the terms if I do this, and if I take a 30k or even 20k loan from her it could potentially only add 100-180$ to my monthly costs each month for running the property. I could easily work my w-2 jobs over a couple years and save that 20-30k to pay the balloon back. My savings rate is about $2200-2500 a month, and I also think with a solid deal on something from a tri to a five plex, maybe I could get decent cashflow to help me even more prepare for that balloon, heck even pay the balloon a year early if the terms allowed it in our contract.

Please respond with any additional questions if you need them to help answer mine. I hope this made sense to read. My apologies for any confusion.