So basically, if the contractor has skin in the game as far as the business goes will that be an advantage or disadvantage? 

All kinds of ways to skin this cat, just gotta check with the lender on what their rules are and get a little creative with things.

Very irritating @Brandon Turner

They want to see "skin in the game".Now it's possible that you could approach someone offering seller financing and ask they take a promissory note for the downpayment, due in say, 6 months or 1 year.  

My parents retired there (got tired of the cold) so I want to have some skin in the game in the Bend / Redmond area so I am more likely to visit them.I'd just like to make some more contacts down that way.Cheers!

No, where is your skin in the game?

If you can prove you are getting a "deal" and have some "skin in the game" of your own, this would help. 

(A FHA 203K loan won't be an option since you don't plan to live in the house and just want to flip it.)From the sounds of it though, your options are probably limited to a private loan (from someone you personally know - like a friend or family member), a hard money loan (they'll likely still want you to have some skin in the game though), and/or partnering up with someone who can fund the project (since it sounds like you can provide the experience).Best of luck to you!

The seller sounds flexible, so I would either come up with some skin or wholesale the opportunity.  

Using your own cash to fund the gap (hence the phrase "Gap Funding") will show you have some "skin in the game" and make lenders more comfortable when deciding to work with you.