Or expenses leaving out key items like water and sewer.

On second home loans you only have to put 10% down, I would just do that if I were you, sounds likes a great opportunity (also you maybe surprised  doing seller carry on 20% is not nearly as difficult for the seller)

Having lived there for 2/5 years, you're in a good spot to carry out your strategy.

I may explore a few more options as well to minimize my carrying costs.Thanks!

@Supada L. one more thing that no else mentioned was the itemized deduction you’d make for this mid-range, but still expensive, expense.

I spoke to my local CPA and he said technically, I should file my passive carry-over losses in every state.

I just keep them separate, carry lots of liability ins. and I don't give it a second thought.

The Seller carried 90% of the purchase price, and we privately funded the remaining 10%.

@Kristin Haug you have some good comments above and I wanted to add some additional items to think about as well.  

Not uncommonKeep the LTV at 75% below the ARV all in, including carrying costs and you'll be golden.