The only approach I’ve found effective is offering a deposit alternative, which lowers upfront costs for tenants without devaluing your property.

It would be a good idea to assess your tolerance to risk and then plan something like that, but using a heloc is going to be around 9-11% in this market so to pay something off with lower interest rate to borrow more might not make much sense.

The Heloc can also pose as a debt obstacle since its an open end mortgage a.k.a credit card.a mortgage is also set up over 30 years so it offers a lower rate and payment. 

Hello, We have a triplex in a lower-income neighborhood in the Tampa Bay area.

Sales Tax Breaks: Construction materials and services may be subject to lower tribal sales taxes—or exempt altogether.4.

Maybe I got lucky because this was a few years ago and with lower prices and lower interest rates, it was easier to do well. 

You could bring less down and possibly have a lower interest rate since you will be living there.

In this market, I would not finance a first time flipper at 75% profit split because the profits and success rate is lower than the last dozen years.  

Would that lower our tax liability from other income we receive or no because this is purely RE and not an operating business?

The only other option would be to get a coborrower to bring the down payment or get seller financing with a lower down payment.