I have actually done all of those things except the last one.

I lost my "cube job" almost four years ago - except for the lack of money (which IS a problem!)

Also, they often don't do city/county/utility searches for unrecorded liens, which can be 10's of $1,000's, and they will be exempted (exceptions) in title policy, and not covered.

Perhaps it's because I don't have tons of cash standing around, I don't want partners, and I don't completely trust the risk equation of larger more expensive Class A projects - these are the only kind of rentals I buy.Assuming you want a project and you can and will put in the elbow grease - If they are performing and in an okay location and in rentable shape with good bones, $6k - $7k income with value-add potential for $100k is a great deal.They should cash flow enough to pay for almost all repairs except for large capital, but then again you should be able to save for those out of cash flow, or refinance in a few years.If they are willing to hold the note for a couple of years, you could offer them a high interest rate if they finance the entire thing for two years, or maybe they can take %10 down.

Even if your agent knows a rare exception, the lender must still comply with Dodd-Frank, so I'm not sure this helps you.

I talked to someone in the area who told me that new builds would sell for $85/ sq ft but after reviewing comps most were 30 years old listed for $65/ sq ft and lingered on the market for 6 to 9 months.The owner of the land is already going to have to take a bath because when he bought it the cabin was usable but it has been left to rot.It is not close enough to any small town to sell to anyone except as a hunting cabin or small weekend farm and its not along a major state highway.

There are exceptions, including these outlined here:What housing is covered?

Crappy tenants will except anything thrown at them because they don't have much to offer.

Your question is really clear as you said was a down payment, no, you can't borrow the down payment in customary conventional financing, there are exceptions but sounds like you're not a first time buyer or low income or at the other extreme.Sounds like you want an investor to buy a house a sell it to you in ten years, could be an option.

In fact, if you can borrow funds for purchase and rehab and secure against other properties (or unsecured if you have someone who trusts you that much - like parents or in laws), then you can buy cash and refinance much sooner with Delayed Financing Exception and pay most or all he lenders back - and then repeat the process with another house (though 2-4 units may have more limitations from Fannie Mae or lenders).You could also secure a small loan against a car or some other asset you have.