I know there are ways without having to put a lot of money on a down payment but my credit isn't where I want it to be and I'm barely getting by on my job.

Would a private money source fund a down payment on a buy and hold property?

If feeling bad for her effects your business decisions you are in the wrong business.Her health and past payment have nothing to do with making business decisions.

Also the loans allow us to pay them off early, make minimum payment for 30 years, or refinance if we choose.

In the unconventional lending world there is no specific period you are required to wait to be able to refinance based on actual appraised value, which means you may be able to refinance and cash out your original down payment funds and potential lever equity immediately following rehab completion and tenant placed.  

Anyone have any experience doing this and if so how would you suggest best way to structure deal, clauses, down payment, etc.

I like this option because our current interest rate is 4.75% and right now, a refi rate is lower than that, making our monthly payment stay relatively close to what it is now, while being able to get a good chunk of money to start investing.

I'll make a list of expenses I think I will encounter.Purchase - 65000Rent-  650Taxes monthly - 105Insurance monthly- 62Vacancy 5% - 32Repair 5% - 32Mortgage - 278All that puts me at 509 expenses versus 650 rent to be at 141 cash flow monthly.I have calculated the CoCR a couple different ways because I am certain that the house is rent ready now but I also figured it with some rehab expenses just in case I find something.141x12= 16921692/16000(down payment plus closing)= 10.5% CoCR1692/18000(down payment, closing, and 2k rehab) = 9.4%Like I said before 650 seems like the safe route for potential rent.

For example, lets say I find a lender and they say yes I will fund your down payment.

I realize the extra cashflow, and I can always make additional principal payments.