How to get a mortgage for a low priced rental

[Kurt Milliron]

Hello All, new to BP but loving it!

A friend of the family has dropped a great opportunity in my lap to buy a 3/1.5 that is 2 blocks from me that has solid tenants and cash flow and I estimate the FMV is around $75k.

My challenge is that the purchase price is $61k, what they owe, so after the 20% down, the mortgage would only be $48k which the banks I've checked with so far have all said is too small and would cost too much.

Is it just a matter of continuing to beat the bush for a mortgage company that will write it or should I look at other options/strategies? 

Thanks for your help!