Creative ideas needed for financing down payment of an Owner financed deal

[Desiree Sprague]

Hi am a new investor. I purchased my first mobile home in Ohio two years ago and it is going on the rental market in February of next year due to a family member living in it at the moment.  I am also a travel healthcare nurse and currently under contract in Hilton head Island South Carolina.  I am very interested in getting into the short term rental properties here on the island. I am looking at making my first deal on a short term rental property using owner financing.  The asking price for the condo is 349,900. The owner is asking for 20% down to finance and set it up like a 30 year mortgage balloon type payment. At the end of 2 - 3 years The rest would be due in full (hopefully rates will be down in 2 to 3 years).  This would still leave me coming up with 70K for a down payment, which I do not have, so I am looking for a creative loan option for that down payment. Any other suggestions / ideas also would be greatly appreciated.
Thank you in advance.

[Christian Ehlers]

I think @Steve Vaughan had some excellent points here. A 2-3 Year balloon is incredibly short if you don't have a solid plan to refinance out in that time period. I've seen this done but usually only when there is a major rehab project as you'd be increasing the property's value substantially. 

I wouldn't do that short of a balloon, 5-7yrs is the minimum for many investors incase the market takes a downturn which you can't control.

For the downpayment you could try a few things like private money lenders if the deal has enough income to support it, or you could seller finance part of the downpayment. You give them some down payment upfront and then negotiate 6 months for example of 0% interest payments or no payments at all, which you can then use however you need (down payment, reserves, etc).