an accidental BRRRR basically.i'd rather have less cash flow but more capital to deploy than vice versa. 

It'll be tough to get into a pure investment in your area for 35k but here are a few options:- partner on the second deal- if the numbers make sense and you could get more cashflow then you could look at a higher price point but my guess is this will be difficult to find- Buy your first property as planned, and save the 35k as reserves and/or just keep it for the next down payment on another FHA after a year- find a place that needs some work where you can use that money to fix up and force appreciation to the propertyPersonally, I would look at those last 2 options where you have the cash on hand ready to deploy for the next down payment or rehab costs if needed.

We are individuals who have capital to deploy as a loan.

Most do not have that capital to deploy and if they did that's not how they'd deploy it.Gap funding an inexperienced, capital strapped investor is a terrible investment. 

without paying taxes and deploy your tax savings towards growing your wealth.

When my reserves go beyond my comfort threshold, I immediately deploy them into another investment.

Find the most profitable and least risky ways to deploy your money.

Freedom from punching a clock or being deployed. 

In Colorado Springs, for instance, the law requires that any vacation rental (excepting for a few pockets here and there) be your primary residence, but they do have a limited exception for military members deploying overseas.

Will the expected appreciation give you the return on the existing equity that is attractive to you or can you deploy that $510K somewhere else and get a better return?