With $40,000 in cash reserved for contingencies and closing costs, a 20% down payment would be just out of reach for me.

Good deals will find cash, but good cash will find deals.I think the most valuable skill is networking.

Can some of the members of an LLC do their own exchange or cash out at the time of the sale of the property?

I then thought of the idea to offer they a fixed rate if they private lended me cash on a short term (5-10 year) period.

Purchase price: $588,000 Cash invested: $8,000 1988 build duplex What made you interested in investing in this type of deal?

Purchase price: $588,000 Cash invested: $8,000 1988 build duplex What made you interested in investing in this type of deal?

Becoming a Key Principal (KP) in other people’s commercial real estate deals is a great way to shelter your income, participate in several deal at the same time, minimize / spread out risk, capture equity w/ a preferred double-digit return at a discount cash-out-of-pocket investment. 

Possibly we could invest for appreciation only if it's close to breakeven with not too much negative cash flow and the upside appreciation is very promising.

Just get extra liability and call it good.

@Joseph Chiofalo just helped a referral with a high LTV cash out refinance.