(Auctions and foreclosures can also provide great leads.)With $20K, hard money loans are a practical option, as they emphasize a property’s ARV over your financial history.

I currently work with investors who are looking to begin their portfolio in turn-key real estate and manage for them on the back end so they can still enjoy their everyday lives while having a resident in place paying down their loans. 

Most mortgage companies will not call loan due if payments are current but you do run that risk and need to be prepared to payoff or refi at a moments notice.

Cash out should be used as a 12-24 month loan so that you can buy another property and pull cash out at the next 12th or 24th month mark.At that point you take a portion to pay off or down the first loan and use the rest as a down payment on the next REI.

I they accepted an offer of $118K from my brother but since he couldn't get the loan, we're starting over.

Just to name a few: Borrower's Experience FICO Loan Amount Loan Type being sought: Perm (30 yr ams), Bridge (12-36mo I/O), Rehab (12-36mo I/O), Ground Up (12-60mo I/O) Property Type (1-4 unit, 5+ MF, Warehouse/industrial, Hospitality etc)If you have a specific deal in mind, then you can have a lender (or broker) look at it and give you a better idea.

Several have mentioned utilizing low down payment second home loans for qualifying.

Unlike a mortgage the interest on your loan will not be tax deductible.

You can also see total loan exposure, every loan ever pulled, every property ever owed, every co-signing partner from every project, permits, etc... 

Most lenders I work with would lend you 70%-75% of the value of the property, but only so much that your NOI/profit is 20%-25% of the monthly loan payment.