You're in essence asking folks for permission to lie. 

Essentially what that means, is if you lied on the loan application and at a later date the bank figures that out, you are on the hook.Having said that, you will have a hard time getting a non-recourse on a standard residential property (1-4 unit).

Do you have 600k lying around ?

Also, @Chirag Shah, I did not have $36k lying around for the down payment and repairs. 

I suppose, if you can't muster up the 7% of your own money needed to get it, then sure, chicken out!

He felt that $66k is what it was worth and was happy to play chicken with the bank.He didn't close on it.

Some sort of profit sharing arrangement with the investor so that your interests are alignedAll in all, I'd say it is a risky play, but in risk lies great returns.

My interest lies in buy and holds so that I can rent out a multi-family unit in the near future for my first investment property.  

You shouldn't be able to just walk into a court room and spout off lies, wasting the courts and my time

, but concealing your payment on an outstanding debt is lying on a federal form (Fannie Mae Form 1003).