As others have suggested, you could get a conventional or FHA loan if you want lower down payment options.

If you're still in college and working with an FHA loan, a duplex can be a solid option.

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

(This option would would not carry any debt, all debt would be paid in cash)Or keep our current house, rent it out, and cash flow NET monthly about $1,500?

@Hiyun Park only experienced investors can DIY everything in Class C Midwest areas like Detroit, Cleveland, St Louis, etc.Hopefully the info below will help you:-----------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Credit is a factor as bad credit may limit options, or may have the lender require you to put 10 or 20 years of taxes and insurance into escrow. 

What are other options do we have if we don't have piror experience? 

I also have some capital to contribute.Could someone explain how syndications are typically structured, and how are people using Other People's Money (OPM) to build large portfolios with little to no money down?

But yes, there are options to do 80% LTV cash out on the new appraised value, with no seasoning as long as there is documented rehab.

Check out https://legaltemplates.net/form/lease-agreement/termination/...They have more options.