You can come in with extra funds from any source.  

(and have funds for a 3rd when I can find one I like) I've had decent tenants so far and my HOA has been amazing.  

Bad part is I lose my $33k line of credit which could be used in the future and I wouldn't have immediate funds for rehab.  

Big shout out to @Jason Hirko w/ Corridor Funding in Austin for the first loan and helping me find the property!

I know there are many creative ways to get funding so I am turning to experienced investors on BiggerPockets to see if there is a way we could swing this, or if this property is too big of a leap to start as a beginner without a large down payment.

I would personally then use the 40-50k to increase my buying power using Hard Money/ Angel Funds/Etc. 

There is a lot of good information here on BP in the forums.The basic concept is that you can diversify your tax-sheltered retirement savings from stocks, funds, CD's and other conventional financial products and include investment options such as real estate, notes. etc.  

We were thinking of selling our current property and maybe getting 40-50k from that and adding it to our saved funds as this property is probably not the best to have in the long run. 

So you're saying that if I buy in cash, pay for the reno myself, I will still have the option to pull my funds back out after the place is rehabbed and rented?

If funds are tight for you, go door knocking as your way to generate leads.