The risk of default goes up dramatically when a borrower doesn't put any skin in the game.

Often their security deposit comes from government assistance, so they have no "skin in the game", and no vested interest in taking care of your property. 

A few of these states offer some realistic price ranges for even multifamily 2-4 unit homes under $200K.You do not need a lot of skin in the game just 15% down will get you into any 2-4 unit.

They have more skin in the game then you do.Make sure you get clear title.

The question with owner finance still comes to experience and reserves.I can buy no money down with owner finance and show reserves to make the seller comfortable.They want to know when the time comes you can cash them out if needed to and pay off the loan.They also (depending on foreclosure process and timelines of the state) worry that you will run the property down worse from what it is today.They will foreclose,not receive payments,spend a bunch of money,and take back a bigger headache then they had before.I have sellers who have financed me that will write a letter stating I do what I say I am going to do and follow through.If you are just a buyer just learning and wanting to put "no skin in the game" then the seller will not want to take the risk.You have to have experience,reserves,cash to put down (something of value) to get a seller wanting to do the deal.Now you can find sellers wanting to go for anything but the deals are crap.I know a seller right now offering owner finance.Wants 15% down which for the condition of the properties is a pipe dream.The property a 4 unit is owned free and clear.It has been run down over the years.I know taking it over I would want no money down,2 to 3 months of no mortgage payment on the note,and a great interest rate to purchase.I know the landlord just stuck below market tenants because they didn't want to make repairs.I am going to spend a few months getting those tenants out and rehabbing the units and fixing all the problems before generating cash.I know this because I have other buildings close by in the area and I know what it takes to turn them around.If you only want to put 10% down max then start at 3% down and make the seller feel they brought you up to the 10% down.Have to make it look like they won.I am willing to give the seller a little more on price for the right structure and cash flow for me.If they do not own it outright and you do the wrap you have to watch out for the due on sale clause.Especially true if you put a bunch of money down.You have to make sure you can refinance out of the note quick if called and that the payments go to the bank to make sure mortgage is credited every month and not headed to foreclosure.

But the loans can be 100% (purchase price and repair costs), as they loan based on the value of the deal, not necessarily the borrowers credit worthiness or skin in the game.

Keep copies of lease secure and use addendums to renew it every year if you get long-term tenantsBe friendly, have a thick skin and enjoy being a landlord. 

They have more skin in the game then you do.Make sure you get clear title.

They don't have any skin in the game because they get paid either way.

my advice is you treat this as a business and start with hard money for the capital you have saved. buy below value, fix, and RF to continue and have good skin in the game.