Good luck on your journey and I hope you provide the financial security you hope for to your daughters. 

I would have a house already but that is used as rental and I bought it using private lenders.

Some investors use conventional loans, while others use private lenders, hard money loans, or partnerships.

We are now suing them in TX small claims court as the security deposit was not enough to cover the 2 - 3 months rent after they trashed the house. 

They must reimburse you for taking your private property and using it.

Do some smaller dollar private lendingA property is too capital intensive and $20k will not get you very far.You also did not describe what level of risk you want to take, so that is something also to take into consideration when evaluating where to invest.

You must keep the tenants security deposit at a bank that physically operates a branch office in the State of NC.  

Another option would be working with private lenders to see if they're open to your idea should you need additional funding. 

This is a 'nicer' mobile home, double wide, 1998, shaped / looks more like a 'house', attached garage, on a very beautiful private lot. 

Several options you can explore to get the down payment capital: Solo401k; HELOC on personal residence or from equity of the SFR; Cash Value Life Insurance Policy; Business Credit; Private Lenders, to name a few.