Found a Deal - No Money for Down Payment

[Michael Meade]

Hey everyone, 

I've been listening to the podcast for a few months now and recently joined BP, but I'm a first time poster here.  I currently own two single family rental properties, and I'm looking to gain more.  I've found a deal that I think could be a good flip in Nashville, TN.  Worst case scenario, I could hold it and rent it out and still be cash flow positive.  The house is bank owned and vacant.  The pictures don't look like it needs much repair, just paint and carpet/hardwood, possibly a little kitchen and bathroom updates.  I'm making a scheduling to see it this weekend to determine if there's more work needed to be done than the pictures are showing.

My problem is that I don't have the cash right now to put 20% down.  I have some equity I could tap into on only one of my rentals, but it wouldn't be enough for 20% of the price I'm wanting to offer.  I also know banks wouldn't like to see me taking on debt to acquire this property.  

Having never done a flip before, the hard money lenders I'm finding are wanting me to bring 30% down for their loans. If I can't do 20% down, I certainly can't do 30%. Plus I don't have an LLC established like they want. So it looks like my only options are either applying for a 3.5% or 5% down loan (maybe a 203k) or finding an investor/partner to help fund this deal. From everything I've read and been told these low down payment loans are for personal residences only. If anyone has any recommendations or knows of any loan programs that are good for what I'm looking at, please let me know. Any help would be much appreciated.

Thanks,

Michael