I would highly recommend doing a renovation loan like the 203k or homestyle - you are able to leverage SO MUCH CASH for such a low down payment. 

Loan terms seem reasonable.

There are 10% SBA loans to purchase businesses.

Most lenders will for try to send you down other roads first such as a loan mod or short sale, before they agree to DIL. 

Determine the cost of construction (hiring a contractor in the GNO area is going to start around $165-175/sqft to build) and be sure to include all holding costs, as well as interest in the loan.

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

Points and loan details are TBD still as we're just getting the tentative process down on paper as we wade into the details. 

The reason I say this is because you probably have a loan on the properties, or one will have to get a loan to buy out the other.

It was great to get our heads in the game, and got us to move quicker to get a house (since we were basically forced to get a pre-approved loan in order to tour houses...).

I had a “lender” tell me he’d give me a personal loan with a fixed 4% rate on a 30 year term at whatever amount I wanted because he would like to “build a relationship” with me.