You can allocate those proceeds any way you want - as equal down payments or buy one for cash and others with loans - It doesn't matter a bit as long as you use all of the cash and purchase at least as much as you sell. 

I flip with cash, not loans, mainly because there are not enough deals out there that meet my highly selective acquisition criteria, so no need to pay interest on cash otherwise sitting in a money market account. 

@Steve Powers is correct that these were mostly originated as owner occupied loans.

Hey Makani, you should check out DSCR loans, which are primarily for investment properties and focus on the property’s income potential rather than your personal income.

I was also on the construction loans..

You won’t find many seller-financing deals here, so if you're looking to scale quickly, your next best option is the BRRRR method—using cash or hard money to acquire properties and DSCR loans to refinance into. 

If it is with HUD, did they foreclose or is HUD servicing the loan? 

I know that interest on the acquisition loan can be included in the cost basis since it’s inventory.

Here's a breakdown on loan options to consider:FHA Loan: @Brittany Minocchi is right in looking at FHA option.  

I ran my own custom proforma for a bank loan using the asking price that would generate a cap rate over 10% and CoC just under 20%.