The only other option I see is a short sale, if you don't need to purchase for a few years and don't mind a temporary credit hit to save the $60k.  

@Dave Foster   @bill ExeterMy view is without violating any irs rules your best option may be to live in the property 2 years and use the exemption.  

There are also some benefits to leverage such as tax breaks that lowers the effective cost of borrowing the money.

The rates will be lower and will allow you to maximize profits.

@Jackson Pudlo Hey Jackson,I realize you posted this 6 days ago, but both options—SFH and Multi—are great.

Our median price home is much lower than Austin.

Also HELOC's typically have lower interest rates than personal loans since it is secured by your home.

Get a nice downpayment (lower LTV better)Hope this helps

Plus today's rates for conventional loans are in the single digits, which are lower than hard money.

that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:Class A Properties:Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.Vacancy Est: Historically 10%, 5% the more recent norm.Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.Class B Properties:Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 yearsClass C Properties:Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation.