80k cash flowing property - traditional loan is ~30k out of pocket

[Michael Longobardi]

We started wholesaling very recently and a deal came up through our bandit signs. To make a long story short - it's an updated (new SS appliances, paint, carpet, etc.) 2br 1ba on 78x100 lot in NY - taxes and insurance are $300 pm and it's occupied with tenants paying $1400 per month. I called my mortgage broker to run the numbers and he said that I can do it as investment property, 25% down + closing - The fee worksheet showed that my total out of pocket is 28,000 and I still need to hire an attorney. I spoke to another investor today who suggested an FHA, but I already have a primary residence and it would look a little odd to leave a 5BR to go to a 2BR. I called my mortgage broker back and he said this was my only option and then I asked if there was anything else that could work. He reluctantly told me that subprimes were coming back, but quickly said that I shouldn't pay 7%. I told him that I was not opposed to that rate if it could get me in without so much down. He said that he would look into the product because it isn't something he's used before and would get back to me. Does anyone have any ideas?