Getting started short-term rental investment

[Todd Fuller]

Looking for advice/options to finance a short-term rental property.

Here's the deal:

Property: Purchase price $400k, 2yr rental history gross $70k/yr, looking to do improvements $10-15k once purchased. Positive Cash-flow $500-1000/mo (If I put cash down, less if I finance DP)

Me: I'm approved for a conventional loan categorized as second residence (I currently rent), 30yr fixed. Requires 10% down. I have cash and IRA for assets.

Question: Putting the $40k down (10%) with my own cash would hurt my liquidity. I'd prefer to use my cash for improvements. Looking for advice/options as to how to fund the down payment. (Seller is not interested in carryback, or maybe I'm not proposing it correctly)