Typically speaking 20% down (80% LTV) is the bare minimum that commercial lending requires.  10% down is unheard of unless you are getting a great deal and negotiate some small seller financing in second position or getting an SBA Loan for acquisition where your business will occupy over 51% of. 

It has more than 90,000 participants throughout the United States. 

Most of my fix-n-flips are financially at least second base hits, or home runs, but this one was barely a base hit. 

Have you participated in any deals?

Either1) your startup takes off and you can distribute profit fast enough to pay off your debts, or2) you find another source of $100,000 a year (which barely even starts to pay down the $300k, but might provide a better chance for a better loan), or3) you BK and possibly lose the rental houses to creditors (hopefully not, but we don’t know how they are held), or 4) you sell the houses, take the tax hit, work with the IRS on a payment plan whose interest will be much lower than your CCs, and focus on the startup.  

I'm barely considering my second house, just bought the first in Jenks school district 10 months ago.

Consider if refinancing after increasing rents could work, and whether MTR/STR demand is strong enough to sustain long-term profitability.Keep as LTR with Minimal Cash Flow: While this avoids a cash outlay, being cash flow negative or barely breaking even isn’t sustainable long-term.

I don't have to participate in the program in my state, and I don't participate. 

I recently participated in the Howard county tax lien sale and have a property that I can now start the foreclosure process on.

You know how some states barely raise an eyebrow when you swap out one investment property for another?