If that works then I'll have cash on hand otherwise I'll have to use the equity instead.My previous buyer's agent and friend I worked with in Mt.

Besides sweat equity i feel like he has to put money up also.

Depending on your AS IS and ARV Value, you may be able to cash out on some equity to start the work. 

Contrary to popular belief though, law is very, very "malleable" depending on what modifies the position and various lawyers interpretations.

I'm looking for suggestions, possibly even an equity partner in the deal, and/or a down payment help funding source.

And with a bit of luck you'll be in a position to use your low down money to start buying real estate while still in a W2 job and with a nice stock portfolio (of reits or whatever). 

If you have solid equity in the deal or if you have increased your credit score.

Hi Joshua, I'm glad you posted this, since I'm actually into that position right now.

While discussing various strategies with another investor friend, I suggested that I’d like to do a 1031 exchange, taking my equity and rolling it into a smaller home to start my BRRRR endeavors.

Regardless of the type of loan/lender, they almost always need to be in 1st position.