I'm currently working on scaling up quickly through purchasing large SFR portfolios and/or apartments, and I've spoken to a few sellers willing to carry back a seller 2nd note of 20-30% (i.e. the down payment).

Yes I can do 10% down, but only if the seller carries a 10% second position. 

They are pushed into future years or, in IRS jargon, carried forward.

Back in the day we carried a balance of $100,000+ that was owed to us and that is now down to only $10,000 or so and we only cover out of pocket if it's an emergency.The PM must have sufficient reserves to do the necessary maintenance work and shouldn't be chasing landlords for money.Just my opinion...Also, a PM's number 1 profit center is maintenance up charge.Landlords don't have much insight and PM's nickel and dime to death on those.If you are suspicious, ask for a receipt so they aren't making up non existent maintenance.Let them make their money tho and calculate that into your expense pro-forma.Otherwise, manage yourself and deal with the $#%^@ that comes with it lol.Multifamily in Ohio, you can get for $25,000 - $35,000 a unit.Drop another $5,000 - $10,000 into the turns and rents should be North of $800pm.Decent area's also.Personally, I wouldn't get out of bed unless I'm making the above numbers.Wishing you much success

ALL taxable gains carry over for the rest of your life or until you choose to sell without exchanging.

And the property manager is the only person with a long-term interest in your property, so their opinion carries a lot of weight!

Can't you get your builder's risk policy from the same agent you currently carry your general liability (for your GC business) with? 

I do carry STR insurance myself that allows arbitrage and it costs several times as much as landlord insurance.

Aside from the responses above regarding the bank likely requiring the 20% funds to be yours, good luck finding any private lender willing to take a second position note on a 100% LTV for any %, let alone a tiny 3%.Now, banks do, at times, allow seller carried back seconds, but unlikely with no skin in the game from the borrower.

I then took that money, paid off most of my debt, and then started looking for a place where the owner would carry the note and I could afford the down payment.The only thing I could find that met those requirements was a 100-year-old house that had been converted some decades ago into three, one-bedroom apartments.