How do I find loans for $20-$30K on flips/rentals w/out credit?

[Bryan Kaylor]

Hi - my first post here. I've been researching all of this for a few weeks now, full time, (meaning not passively in my free time, but all day every day, for weeks), trying to figure it out but all the really important questions seem to be locked behind paywalls from gurus wanting to sell their books and programs and I don't have money for that. So I've been doing all the research on my own via youtube and sites like this. 

Basically, I've found several properties in my area with asking prices in the $20-$30K range. I've driven through the neighborhoods to see them in person. Most of them are in neighborhoods with an average value of around $35-$50K, at least based on zillow, trulia, etc., (and yes, I realize those are not the best sources of accurate value estimates but I don't have access to mls or any other resources like that right now so I can only go by what zillow and the like tell me at this point). 

My theory/plan is to acquire some of these $25K houses, put about $5K of rehab into them, and then either flip them for a quick $5-$10K profit or keep them as rentals for a while. Possibly even do them as rent-to-owns. Some are in neighborhoods where the average rent is around the $600-$800 range and they aren't bad neighborhoods. They're nothing fancy, mostly low income housing, a lot of section 8's, but they aren't what you would call ghetto or dangerous areas. I've lived in this area most of my life, so I know what neighborhoods to stay away from. These aren't those neighborhoods. Mostly it's just low income - the average fastfood/wa-lmart salaries.

So the problem I have is that I have zero money of my own and would have to borrow, but due to a mountain of student loan debt and being unemployed for a number of years now scraping by on handyman jobs and "freelance artist" work, I don't have the credit or resources to get even a $20K house financed. I thought I'd try to get my dad interested in being the financial partner, with me being the one doing all the labor to get the properties into rental ready condition, but that doesn't seem to be working. Every house I've looked at he finds something wrong with, either the house itself or the neighborhood it's in. He basically thinks that anything that requires more than paint and some new carpet is a no-go and he keeps waiting for that 2 story mansion on auction for a $5K tax lien that no one else bids on, and refers back to that time a few years ago when the house across the street from him sold for $1,100 at a tax sale. While I know those kinds of deals do happen from time, it's just not realistic to expect, and holding out for them is just wasting your time. I understand not just jumping on the first house that looks like it might be a good deal, but I've already watched 2 or 3 potential good deals disappear in the last couple weeks due to not having the resources myself. So I'm trying to figure out if there's some other way to get the financing I need or if I'm just wasting my time on all of this. I keep hearing people talking about no money down no credit but that just doesn't make sense to me. Even the wholesaling aspect, or the lease-option, where you get a buyer interested in the property, then get the seller to owner finance, that seller is going to want a down payment, and isn't going to agree to me getting that down payment instead. So I don't know where to go at this point and am thinking I've just been wasting my time for the last month. Any advice is much appreciated. Hope none of this violates the strict rules here. Rather frustrated. Thanks.