How to get a loan on a house less than 50k?

[John Hyatt]

I got inspired the other day when I read an article on a guy who bought 44 units in about 5 years, started at 20.

I found a neighborhood were the houses are selling around 35k and the rents are $700! I got so excited I wanted to stop paying off debt and save up 20% for down payment, but then I found out loans under 50k are almost unheard of...I got a couple of problems

1) No money - doing the Dave Ramsey method with my wife and paying off all student loan debt aggressively before investing. Every penny above my expenses each month is going to paying off debt. Would take me a year or two to save up 35k (opportunity gone). 

2) my friends with money are making 10% or more in stock and think they are going to double money...they won't cash out.

3) lenders usually want a loan to be at least 50k to make a loan.

Does anyone have a solution? I listened to a podcast on portfolio lenders and I think that will be great once I get a couple more houses.

Currently, I have two homes with about 100k equity, but I don't want to use my primary residence as collateral (learned that lesson in the crash). So I would have about 60k equity in a house. I have about 24k credit limit on all credit cards and some are at 0% interest and I can save about 5k in next couple of months instead of paying off debt. 

Will a lender do 20% down on two homes? 70k vs one at 35k?