Can anybody shed some light?

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. 

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

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.

We also replaced quite a few old ceiling lights with new ceiling fan/light combos and replaced any cracked or suspect outlets, etc.Kitchens got new stoves and microwaves and upgraded furniture in common areas.

First time home buyer programs (FHA, LoanPossible) or even low down payment options (5% down with a conventional loan) are all limited to owner occupants. - You CAN NOT use a conventional mortgage to purchase a property with an LLC.

Very light repairs needed and turnkey property. 

I also wouldn't want to drive through Clark-Fulton at night to replace a broken light fixture.