The norm is "No part of the down payment can be borrowed funds". 

I expect MKE prices long term (10 years) to at least increase to the national average, there is really no reason why Milwaukee should not get there based on a current trajectory as well as infrastructure spending and re-development we are seeing downtown.We have seen consistent appreciation never below 6%, but also never over 8% over the last 9 years, which basically means median prices have doubled.

SFRs are simple but apartments I have no idea how many units to target.

Checking with the 2 lenders who I have preqalified with, one seems to think it's no problem, the other is still checking with Title Dept. to find out, but feels it likely is an issue since the Lender would not be covered in a potential claim. 

@Ally Gao- you dont say they  are  unwilling to move  so no need for lrgal moves yet ...to help them move out - maybe consider  cutting them the amount that  they owe you  as an incentive to get  some  paid back  PLUS to get them out of the unit 

.- No kids, just a significant other.- Zero debt.If you were me, what would be your next step?

So no, you don't need private money.

This will be all done with no outside parties so VA will not question anything.

@Soup NikkI am in The wrong type of syndication as a GP.As an LP who also invests with find those fees to be very high and many are front loaded so the GP has little to no risk (even having fees to guarantee the loan…) you are taking on all the risk and the upside to me is not worth that risk.

But if you have no use for the money, then do 20%.