We will probably need an FHA loan in order to afford a down payment and house hack.

It was difficult to verify income because of cash paid construction jobs, but previous landlord confirmed they never missed a payment.

So to delay the process of saving for an eternity for the down payment on my first property I decided to apply for a HELOC.

Here's the question.....instead of accessing equity, what resources are there to fund a down payment on a 10+ unit commercial property?

Investing in a REIT will give you a lower rate of return than a well bought multiunit - house hacking is the easiest way to get in with that amount of capital - otherwise, you need more than that for the down payment - depending on prices in your area.

Purchase price: $125,000 (assuming offer is accepted)Down payment: $25,000 (20%)Financing: 30 yr @ 5% = $540 /moInitial rehab: $5,000Closing cost: $2,0001st yr Insurance: $1440Taxes: $120 /moInsurance: $120 /moVacancy: $150 /mo (8%)Maint/Cap-Ex: $270 /mo (15%)TOTAL EXPENSES: $1200Rent: $450 /unitTOTAL INCOME: $1800Cashflow: $600 /moCash on Cash: 21.5%Here is a link to the listing if it may provide more insight:Quadplex ListingThe unit is located on a decent street in a very small town (<10,000).

I would additionally have enough to cover 6 months of mortgage payments (including tax and insurance).   

This was great for me since it allowed to renovate each unit one at a time without making me pay the entire mortgage payment each month.

save yourself a lot of grief and have an attorney or mlo underwrite your loan I don't know why you would want to lease for a year and then seller finance with out an option to buy and a hefty payment Is your market not appreciating?

Either the property comes under contract or in the event of a HUD home, the property will get postponed several times before it is open to investor and then it gets pulled from the site.When I inquired of one of the realtors that has been very responsive and accommodating re: the payment of his fees, he stated that the "seller" pays his fees.