If your friend is unwilling to pay that then move on.

Brokers and sellers need to be able to envision you as a good operator for the business, and they have to believe you can actually get the deal done.Your initial outreach should not get into numbers.

Quote from @Leeling Chew: It doesn't matter who pays the bills.

As Sean above alluded to- never pay a seller for your future hard work, risk and stress. 

Is it better to keep adding equity by doing work on the houses while I'm renting them then refinance to recover the initial down-payment to reinvest into another property or to pay down the heloc?

We couldn't close and had to have (and pay for) a re-inspection, even though the hurricane did not come anywhere close by.

This kind of govt nosiness and overreach is why I initially decided against the financial planning industry before starting in credit. you can thank 2008 and all the fraud that went on for that.

FHA Loan – 3.5% Down (Owner-Occupied)Buy a duplex, triplex, or fourplex, live in one unit, and rent out the others.You only need 3.5% down with a 580+ credit score.STRs are typically not allowed initially, but you can transition over time.3.

I'd be able to put 20% down on each and have money left over for some repairs/updates.It seems like I'd initially take on more stress, less initial return but the long term scalability seems great.  

Could any of you guide me on what I should do initially to secure financing?