As others have suggested, you could get a conventional or FHA loan if you want lower down payment options.

I suppose something more turn-key could be a good option, but haven't come across many viable options there yet.Anyways, we still have a lot more to learn and still need to familiarize ourselves with the area/market, but just wanted to pop in to say hi! 

I’m not sure what is the best option here, if anyone could shed some wisdom that would be immensely appreciated. 

House hacking is probably your best option.

@Ryan Dori lots of options besides DSCR. 1 Year income, Asset Depletion, Bank Statements, and P & L only loans. 

Account Closed a PMC has two options to get liability insurance (tenant slip & fall) protection:1) Get added to owner's policy as Additionally Insured (NOT named insured).2) Setup a master commercial policy and add every property they manage to it and then charge those owners the cost of the policy.Otherwise, a PMC CANNOT get liability coverage on a property they have no ownership interest in.So, nothing wrong with their request.

The only other option I see is a short sale, if you don't need to purchase for a few years and don't mind a temporary credit hit to save the $60k.  

My vote is option one.  

Quote from @Paige Seeley: @Jay Hurst even with 20% down, what non conventional options are you talking about? 

I do have monthly mortgages to be paid and not having rental income to offset my negative cash flow has been a learning experience and really trying to think of what options I have to have better success at this.