Assuming 7.5% interest rate, the negative leverage would require you to put way more than 20% down just to break even.  

In the last 18 months various states have instituted new rules, regulations or laws related to (1) need for licensure to wholesale (2) restrictions on marketing of a property in which you do not have ownership and (3) disclosure requirements when dealing with a homeowner that makes it clear to the homeowner that the contact signed with the wholesaler is not a definitive “sales” contract, therefore making it less likely home owners will sign4.

Now, some states require an attorney to review contracts. 

My goal is to diversify with an investment that generates steady cash flow, even if it requires a larger upfront investment and lower overall returns. 

Using a HELOC for the down payment on the second home might be an option, but lenders may require you to wait a few months post-closing on the multi-family before approving new loans.The BRRRR-style approach could work if you can renovate and refinance quickly, but make sure the timeline aligns with your lender’s requirements.

Maybe I’m wrong but I had to do that on our STR (Ring) and Wyze also requires close proximity on initial setup.

To grow a portfolio (ie #'s of units) requires a lot of capital.

I am looking at different loan options but to break even (not having to put any money of my own in the house after the initial down payment) the current down payment required is that much. 

I work with several who go to 600 or don't require a FICO for commercial at all.  

Capex-  make a list of all upgrades required.