Reason I ask is the market rents are way higher in the area and the asking price does work with currents. 

Do you want higher risk and more return or low risk and lower returns?

They may offer higher loan-to-value (LTV) ratios or work with investors who don’t have perfect credit.

Beyond that there are hard money lenders who charge higher rates to take on more risk... but they again start by looking at you, your skill set, and your previous experience in both managing your credit, as well as your real estate investment history.  

Hey Luke - Tapping into your equity through a HELOC is definitely a common way to fund a down payment, but like you said, having two open loans can lead to higher closing costs and potentially impact cash flow.

Early Financial freedom will forever elude the person earning a middle class income, but who is unwilling to do some combination of quitting their job for something much higher risk/reward, like starting a business, drastically cutting back on expenses, etc.

They sell the investor aspects that make the home higher than regular market value in many cases :)   It is pathetic to see non vacation rental realtors butcher good listings. 

Stay away from states that require higher taxes, Insurances, and in most cases HOA to avoid lost cash flow.

I think it is possible to find a market that provides both cash-flow and appreciation.A few years ago I was looking for 8% cash on cash and 4% appreciation.Now I look for 4% cash on cash and 4% appreciation.Some years, appreciation will be higher.

Our primary appraised for $100K higher than the purchase price, the rental on the conventional loan appraised for somewhere between $20-40K higher than the purchase price.