You could potentially negotiate this by structuring it in a way that aligns with the seller's need for a quick settlement, without lowering the cash they’d receive.

They lower taxable income for federal taxes but not for FICA.However, employer contributions made by the S-Corp are not subject to FICA and count as a business expense.Make sure your W-2 correctly reports wages, deferrals, and FICA wages.

The only other option would be to get a coborrower to bring the down payment or get seller financing with a lower down payment. 

Off-market deals are key if you go this route, so networking is huge.Out-of-state investing is another option people love, especially in markets like PA (Philly, Scranton) or even down south where prices are lower, and the landlord-tenant laws are more forgiving.

I'd recommend starting with the lower hanging fruit than a large basement reno - if your comps are close but don't quite get you to your number.Finishing the basement (with proper egress) could push you over the top, but confirm with an appraiser first to ensure it counts.

New Britain is where you are going to get the best ROI like you mentioned and this is because as a whole there are more areas within the city where qualified tenants are looking to live and the purchase prices are lower while still maintaining competitive rents.

But if you're comfortable with rougher areas, then you can definitely find properties at lower prices.

You can also choose to take the consistent lower risk 70% of expected income model where you get that same check every month, regardless of turnover and vacancy rates.

there's a tremendous demand for inventory - both primary residences and rentals - and so buyers are willing to accept lower yield than a lot of us think makes sense. 

I don't charge renter's insurance for my lower class properties.