I realize it's not how your supposed to do it (idk legality) but has anyone bought a second home to get the 5% down payment instead of the 20% down payment it costs for an investment property?

Hi Andrew,The bank will need a 12 month lease before they can count any rental payments as income.

I have some heloc available and I will outline that information below.Purchase Price: $575,000Revenue: $100,183Expense: $33,355NOI: $39,113Seller Willing to Finance with 30% Down: $172,500HELOC Availability: $220,000Appraised 6/2016: $575,0002013-2016: $200,000 in Renovation, proven with Tax ReturnI was hoping to use the HELOC for a down payment.

In addition, I would update the listing to mention that you're open to owner finance at a very reasonable terms such as 6-7% interest rate with 20% down payment, no credit no problem and hope that would spurn more interest.

If I crafted a proposal for the seller to finance a portion of the down payment, what might that look like? 

The deal can be structured so that you "the seller" carry back a $90,000 first lien, usually with an 8% interest rate (which you will sell to a note buyer at closing) and a $5,000 second lien, which you will keep and receive monthly payments for.

The deal can be structured so that you "the seller" carry back a $90,000 first lien, usually with an 8% interest rate (which you will sell to a note buyer at closing) and a $5,000 second lien, which you will keep and receive monthly payments for. 

This lowers their required down payment to 10%.There's always something you can do in an expensive market - look for local experts and learn how they've done it!

The initial purchase price was $475,000 with a rehab of $160,000 and a 5% down payment of $32,000 for a total mortgage of $603,000.  

Looking for hard money, I dont have any money for a down payment, but willing to negotiate.