I would recommend using a FHA 203k loan to utilize as little amount of money as possible but get yourself a property where you can build some instant equity (to be used later as leverage for your next deal).  

I'd hate to see someone with good intentions like yourself, who is forced to scrimp on something or things due to flat out lack of funds then be labeled a slumlord, since the city has a MASSIVE hammer to whack the heck out of anyone they think of that way, as code just for exterior is basically a like new structure, down to the paint not chipping etc and they can rack up 20, 30+ code violations instantly and then take that "slumlord" to court, get a civil judgement so you can't even just walk away then, it will hurt or ruin chances for any other mortgage, they don't want that happening and I've seen it happen to people who most of the time, did deserve it. $5k won't even cover a cosmetic rehab and the city also hammered the biggest mega banks on REO homes they let slide, forcing them to hire crews I knew to spend $15k, $20k or more JUST ON EXTERIOR WORK, insides still trashed in areas where nothing sells above $50k or $60k, using same tactics.

@Cashmere Robinson Great point on looking for a distressed property to add instant equity with the work put into the property.Account Closed Thanks for the advice and good points to consider.

And the people you are meeting instantly form an opinion about you.

What most seem to be dream chasers, they need instant gratification, wheeler dealers that have been mislead, actually they are victims and don't know it.

I would think cash-out refi would be my best option but then again I was also thinking of refinancing and then doing a home equity loan.Can my mom and I instantly do a cash out refi even though I am not on the initial loan?

I put at least 50% down so they cash flow instantly.

Aside from MLS access and making my own offers, it gives instant credibility when I'm talking to owners, buyers, and other agents.

So when I hear the words "thank you for your service" I instantly think they are referring to those who don't have the luxuries I have. 

Examine the numbers thoroughly to determine cash flow with BiggerPockets calculators.Not only would I rule out appreciation as a factor but I would never buy a property that didn't have instant equity.