What do you think of this plan?

My wife and I own a "second home" in Reno Nevada which we purchased with 10% down and were planning to purchase another one, but our lender told us that we can't get another loan for a second home within ~100 mile radius of an area where we already own a second home/primary residence.

But there is a glitch in your plan. 

Purchase price of $1.1mil, and I am planning to put in some work into it ($200 to 300k) since the house hasn't been renovated for over 30 years. 

The lease (with the current college students) was just renewed through their 2025 school year.I'm trying to figure out how to make this happen with little-to-no money down, as I have other 'irons in the fire' at the moment.I'm planning to offer $400-450k for the home, and am trying to structure something where a conventional lender would loan an amount that would be covered by the current rental rate (lets just say $300-350k)...   ...then, anything outside of that amount, would be carried by the Seller (for a short while)...   ...Seller financed with a ballon in 5-years?  

You don't have to skip the daily Starbucks to do it, you need to focus on how will you save large (3.5-20% depending on route you go) sums of money. 

Sometimes people lower their average daily rate to reach high occupancy levels so I always watch out for that. 

How you proceed will depend on a few factors:- financing will depend on your exit strategy - you'll be best off if you can decided the exit plan (LTR, MTR, or STR) before buying- Since you're not employed and living on savings, what is your burn rate and your cash runway?

If this is a money saving plan it’s a horrible one.

In either case, you'd need to plan for a 15-20% minimum down payment depending on which route you choose to go. 620+ FICO.