Although it will take time, you’ll get more utility from carrying forward whatever remains after deducting the $3K max.

If you don't want to carry any open debt, then the few times you want some it'll always be this hassle.

We scrubbed the walls, TSP worked well, then painted with Kilz. 

I'd rather have the owner carry at 6% interest only for a period of a year, while we renovate substantial fixers, and I get these terms repeatedly (because I ask).

You might be able to find owner financing or an owner willing to carry a 2nd to pay for most or all of the 20% down on the next one.

I'm also very surprised their old insurance even talked to you, let alone told you they no longer carry that business because of non-payment..."

One example of a deal I  am working right now is buying a set  8-12 of seller financed units using my ROTH as a down payment and the owner carrying a non recourse seller financed note.

Maybe they would carry back the debt on the other half.

The next question to be asked after your question is: Are you realistically set up to rehab 2-3 properties all at the same time and limit the rehab time so that your carrying costs are limited as much as possible?

I actually know the current owner who is willing to work with us on doing a "subject to" on his current mortgage and carry back the down payment.