That will get you looking at cash flow and end up in a lower rated area than you think.

I have focused my research on house hacking due to the lower upfront capital requirements with an FHA loan.

In my area a B class rental might be occupied by family with 2 wage earners each working full-time entry level jobs like warehouse workers.

If rates drop, more buyers will come to the market and you can refinance to lower your monthly payment.

The more hands off you get, the lower the returns.

I know they have a cap at 10.We have also looked at using local banks in the area but those terms are usually 3 years arms to ten year arms and 20 year loans so it lowers cash flow significantly. 

Are there any options for lower down payment loans in general or even for college students?

I'd wait this one out until rates lower and you can refi and learn from it to buy better the next time around. 

We discovered problems that required a lot of work and significantly reduced the property’s value, forcing me to lower the price.

This allows you to access funds while keeping your existing mortgages intact.Second Mortgage: Explore lenders who offer second-position loans on investment properties, though rates will be higher.Cash-Out HELOC : While traditional banks often restrict HELOCs on non-owner-occupied properties, some portfolio or private lenders may offer HELOCs for investors.With $15-20K in liquid funds, look for deals where you can negotiate terms:Seller Financing: Negotiate lower down payments or interest-only periods.Subject-To Financing: Assume the seller’s existing mortgage while covering the down payment.Lease-to-Own: Lock in the purchase price while using rental income to build equity.