Purchasing my 2nd investment property and I financed with the bank. Were almost at the finish line and bank hits us with we need to see funds for downpayment in your account and it needs to show that's it's been there...

The trick is getting approved for grants and tax credits. 

I recently got pre-approved for 5% interest on 30 year but it was 25% down??

I’m in the process of making my first purchase, but first I’m getting a pre-approval for financing.

Should I wait to refinance my rental property until after we're pre-approved with a fixed rate mortgage?

It's only a stepping stone to break free.While you are slaving, eat ramen, roommate up or live in trailer, avoid Starbucks and tuck every dollar you can squeeze out into a bank account. need 20% down and money for materials. so for 80K home (trashed), you will want 35K banked to get started, just a rough idea.Then, get pre-approved.

Has anyone ever had any septic design issues with a state approval for a multi family property?

I think they won't sell the mortgage to another company.I'm working with a local outfit on another pre-approval simultaneously, to hedge my bets.

I found a property manger to rent my home out as a contingency of getting approved for a second mortgage using FHA 3.5% down.

I'd say it may be a little difficult to get approved for financing, but once you get a ft job, many more doors will open up.