MLO input needed: Creative leveraging for financing rentals

[Nikki Wessley]

I don't want to flip or wholesale because I can't assume the risk, don't have the time, and frankly I'm just not that smart. Most importantly, my passion is in renting. Yes I want the financial power, but I'm pretty passionate about putting slum lords out of business. I know several people who are generationally poor, and they're living in slums and paying top dollar. Some of them have a housing choice voucher, and that's my sweet spot. Offer good homes, in safe neighborhoods, to section 8 renters and include utilities in the rent.
Now that you know my passion, I'm curious if anyone else has built a portfolio using traditional financing options?

So, about 3 years ago my daughter was in a car accident and was injured. She's completely recovered now but she received a lump sum of around $20k after fees and hospital bills were paid. She's still not 18 so the funds have to sit in a CD and my husband and I are the guarantors (is that the right word?) of the account until she's 18. We can't spend any of the funds without going before a judge, but we could spend them if we needed to spend them to meet her basic needs. The account is in mine and my husband's name, with our daughter as well. 

We have around $10,000 cash and we have one rental property that we could take $5-$8k HELOC out on if we needed. My MLO said we need a 20% down payment with 6 months of bills in the bank. Our credit scores are around 770-800s and we have zero credit card or "bad" debt (unless you include vehicles as bad debt) with about 20k in available credit on credit cards.

I'm curious if this 20k CD could suffice as the 6 months of bills in the bank. I would like to get a little more of a cash cushion setup before we make a purchase. My shopping range is to buy a 60-70k home, so we'd need $14,000 in cash minimum. 

What are your thoughts?