To leverage the equity for financing my next deal, a second mortgage seems like a more cost-effective option.

Are there any options for lower down payment loans in general or even for college students?

I’m not sure a bank would be your best option but it can’t hurt to try.

In your scenario, selling the relinquished property for $450K after completing a reverse 1031 exchange will allow those proceeds to repay the intermediary without triggering capital gains taxes, provided all exchange requirements are met.

FHA 203(k) Loan BasicsThe FHA 203(k) loan is an excellent option for financing a multifamily property (up to 4 units) with only 3.5% down.

@Michael Klinger  As others posted, SoFi and Discover personal loans are good options and I've used them in the past.  2-3 business days from application to funds in my checking account. 

I'm happy to chat about your options to see if we can get you out of this mess. 

In addition to conventional loans and FHA loans, if either you or your wife are veterans, the VA also has a rehab program.I'd be happy to discuss my rehab experience both as an investor and as a mortgage broker, and at least help you think through your options. 

Staging your house well can help you attract more attention from buyers, which ultimately helps it sell faster and maybe for a higher price than an unstaged home (see visual):What Are My Staging Options?

Your options are limited. 1.