Buying next rental - Lease option or traditional bank loan

[Stephanie Drouillard]

We currently have enough saved for a 15% down payment for our next rental property. When I called the bank to get pre-qualified they told me that we are able, but are very close to being denied because of our debt to income ratio. I already know this would be the last loan the bank would give us for a rental property. This has me thinking and researching about creative seller financing options and I stumbled upon sandwich lease options. This option is intriguing, and has me wondering what other investors out there think. If you had a chunk of money for investing would you spend it as the down payment on 1 rental house, or use it many times as 'option money' for sandwich lease options?  I am leaning towards the down payment route just because it is familiar to me, but I know in the near future I need to get more creative if I want to keep making money in real estate!