I recommend snowballing when you have a 6 month emergency fund in place and can easy pay all of your monthly living expenses.   

What we do instead is raise the rent above market rent. 

In most areas, yes....not traditional hard money, but a Transactional Funding Lender.....1-2 points for a same day closing.

With only 10K the fasted way is like to drastically modify your life style to embrace the frugal and save every penny going forward until you have enough for a DP, closing costs and a reserve fund. $10K after closing costs and holding back a reserve fund will leave you about $5K for a DP.

At the second auction I got outbid by a New York hedge fund.

Right now we are in the middle of an equity raise for this deal.

I would like to  have the funds secured (loan) and readily available for the first opportunity that is available.

They have put quite a bit of rehab into it and our out of funds,  They are asking for a 50-100K 6 month loan and are offering generous interest.Myself and two other personal investors want to commingle our funds for the loan and share in the interest on a proportional basis.  

I'm born and raised here in Colorado. 

Whereas finding a mortgage lender is much easier and you can get the interest rate locked as well as all the funds up front?