Some small local banks are offering commercial LOCs on investment properties, but the rates I've seen on these are north of 10%, have low LTVs, have to be rested once per year, have to be renewed every 2 years, and are callable.

It is generally a bad time to find a tenant (holidays coming up) but you might have some luck in that the supply of housing is probably very low in the city now.

Investigating Days on Market:When you see homes sitting on the market for 60+ days, it does raise a red flag, but it doesn’t necessarily mean rental demand is low.

A mentor of mine with 400 units told me I can use a large seller credit to cover most of the down payment on a property I'm looking at. Any thoughts?

Investment Info:

Single-family residence wholesale investment.

Purchase price: $9,500

Sale price: $15,000

Tax defaulted property in Michigan

To invest in these markets, connect with investors, research neighborhoods with stable employment, good schools, and low vacancy rates, and leverage local expertise.Good luck!

Like @Laura Chotkevys said, you can raise money, creatively finance from the seller, partner, get lower money down loans (SBA - although this is harder for the first deal sometimes), get a private note... lots of ways to go about this with low money down if you put in the work and know how much you need. 

After we move in 4-5 years, I would rent out both units.Pros:Potential for long-term appreciation in San Diego.Cons:The property will not cash flow enough to cover the mortgage while we are living there.After we move, it would provide very low returns and minimal cash flow.Would require a significant portion of my liquidity, making it harder to invest elsewhere and grow my rental portfolio.2.

@Jd Martin I guess what I was trying to do was to get cash out of the situation as a "low cost loan", just because.

SBA - if your property is a business, you may qualify for low interest loans.