Best practices for Creative Funding

[Spencer Scott]

Hello Bigger Pockets team, I want to put you to the test.

I want to buy a house with little to no money down, what should I do?

With that being said, let me give you my situation. I am a 27 year old W2 employee with a base pay of $50,000 plus commissions. I am married to a school teacher who also makes around $50,000. We currently have two properties, one of which is a rental that is only bringing in $1,000 of the $1,600 mortgage (currently being rented to a friend, we know it is bad business). I have about $5,000 of investable cash not including any cash she has saved. We have found multiple duplex deals that according to the Bigger Pockets calculator (and an investor friend) are cash flow positive, good deals. Here comes the problem, we do not have enough money for a down payment..... cough... cough... @Brandon Turner @Mindy Jensen @Joshua Dorkin . 

I would describe myself as a pretty ambitious guy, so let me tell you what I have done so far. I have called every duplex I am interested in and learned that 80% or more of them are willing to owner finance. Which means I only need money for a down payment, which is a problem. I spoke to my private lender who said he will finance me for any amount assuming I can put down 20%, which is a problem. I called my bank and applied for an unsecured line of credit for $35,000 which I was approved for with my wife as a co-signer at 10% interest, which is less of a problem. I looked into a hard money lender but quickly learned hard money may not be a good idea for a buy and hold and a down payment is required, which is a problem. The only thing I have not done is ask friends and family, which I am not interested in doing. I live in North Dallas and have yet to find someone motivated/willing enough to partner on an opportunity, which is a problem. Are there any other methods out there that I have not exhausted?

Should I be actively looking to buy a third house, or should I wait till I have a down payment? 

PS: I can't wait, so if waiting is the recommended option I plan on getting into wholesaling or flipping to raise money for future buy and holds. 

Thanks Bigger Pockets family!

Sincerely,

Spencer Scott