@Ben HuntTo answer your question, lenders can’t waiver or make exceptions to the self sufficiency rule.

I guess they do want to see that I have sufficient reserves, but I just show them I have a 30K on a HELOC available for emergencies.I have also used my HELOC to come up with a portion of the down payment, also. 

And make sure you can easily afford the payments on your primary residence with a sufficient reserve to weather any setbacks (job loss, emergency expenditures, etc.)

In a high-appreciation location, you will do a cash-out refinance when there is sufficient equity to pay the down payment on the next property.

Hey Eric,There are some great answers in this thread, and I'll add my 2 cents coming from the hard money lender space.Hard money loans are very popular for the front end of BRRRR strategies because they often cover both a portion of the acquisition and often 100% of the rehab (on a reimbursement basis).As @Bonnie Low pointed out, most hard money lenders are fine with properties in distress so long as the loan meets their minimums (below 75k loan amounts tend to be difficult to find).A very concrete, quantitative example of how a hard money lender might approach a BRRRR deal is as follows;Purchase price: $200,000Rehab amount: $100,000After-repair value: $375,000Hard money loan amount: $255,000 (85% LTC or 68% LTV)Once the property has been rented out, is stabilized, and has sufficient seasoning, you can then cash-out refinance and replace the hard money loan with a conventional loan (in addition to receiving cash).A couple of additional items to note on the front-end, hard money loan that are seldom discussed;1.

I'd find a way to make sure they have sufficient parking. 

To use FHA for a fourplex you would need to pass the self sufficient test which the rents need to at least cover your full monthly mortgage with taxes and insurance or better.

Alternatively, is it sufficient to have only one LLC in place?

Luckily there are plenty of creative finance opportunities in the Tampa area where 60k would be more than sufficient as a down payment for a nice multi family property in the area.

Do you have sufficient W2 income to cushion you when your first BRRRR rehab almost inevitably goes over-budget?