Conventional Financing for Buy and Hold??

[Will Bradford]

So I have searched and haven't found anything that really is similar to my situation.

I currently own a condo that is paid for in full. Value is about 100k. The building however only has about 50% of the units sold and the developer owns/rents the others. The condo is a rental. I also owe about 35k on my home.

I am looking to purchase my second rental. I checked around today about a cash out refi and was told that this could not happen because the percentage of owner occupied units was not high enough. Fair enough.

I then asked about a conventional 30yr mortgage with 5% down. I was then told that these are very hard because the fixed costs cannot be higher than, I believe it was 5%.

So now I am wondering what to do. I have plenty of cash in reserves but obviously don't want to tie it up as the property that I want to purchase cash flows.

Anyone have any suggestions for this. I'm a construction guy and not financing. It just seems crazy that an excellent credit score, plenty of cash in the back, and conventional 30yr loan wont work.