investment loan using built in equity as a down payment

[Ryan White]

I'm talking with a seller right now that for multiple reasons is willing to sell me the property below market value. At this moment, I'm expecting to be able to obtain it for around $140k and the market analysis shows that it'll appraise for around $200k. So it has built in equity and LTV would be right at 80%, assuming purchase price and appraisal come in as expected. I have to use an investment loan to obtain this property. Does anyone know if I can use the equity in the home I'm buying to secure my investment loan so I don't have to put 20% down? Are there lenders that allow that? In principle it makes sense to me, otherwise, I'm buying the home with 20% equity built in and 20% down, so my LTV starts at 40%.

Thanks for the help.