Let me know if there are other options I should consider.Option 3 - save organically and get creative with sub2, assumption and / or seller-financing for your next acquisition. 

There are so many ways to pick up a good deal without instant equity. 0% down owner finance, subto at a low interest rate and monthly payment.

I was considering using a second home/vacation home loan to finance the property and I would like to know how this would work in conjunction with an LLC. 

Seek out locations that are undergoing gentrification, development, or expansion where property prices may increase over time.Creative Financing: To fund your local deals, consider unique financing solutions including partnerships, seller financing, or private loans.

I have great credit, but what kind of creative investment opportunities exist for someone like me who doesn't have the finances to start out?

Giving up a lower rate on the full financed amount with a refi would be much more painful than just having a second mortgage at a higher rate that was big enough to pay off the CC debt.  

The bank I normally worked with didn't want to finance it due to this tenant leaving since they accounted for 50% of the monthly rent.

Half the battle will be financing.

I'm just getting started in CRE research and am focusing on understanding traditional financing.

If the deal is good enough (i.e. has meat on the bones), investors usually have no issues obtaining financing via hard money, private money or other lending options.Your experience will likely be similar so I'd recommend spending time/effort on finding and negotiating deals.