I say it's a bad idea, i'd rather buy different properties and use that money as down payment.

However, it is a knife that cuts both ways... you can make money or you can loose it. 

They are long term (mean low monthly payments and DTI), give you best rates (Prime + 6% or less) and they don't hurt your personal FICO, so you can keep adding businesses and grow their credibility to the infinity.But to qualify for SBA your business must be 2 years old, must establish FICO SBSS credit, must have a strong cashflow and your personal FICO must be higher than 650.

Hypothetically if there was a website that would tell you about out of state areas to invest in (cutting your search time and energy required when researching new market) with confidence and connecting you with the right people to form a great trustworthy team to work with (eliminating the need of having to go to the property in person to take care of it), that would make you more comfortable investing in properties out of state? 

became our holy grail.We tracked payments with paper notes and consistently followed up with residents about small delinquent balances.

I say it's a bad idea, i'd rather buy different properties and use that money as down payment.

I am hesitant about collecting a partial payment.

The full renovation that's required would cut into profits quite a bit.

While no one has a crystal ball, consider whether that amount is right for a downpayment for your family given the new area, home price ranges (which may continue to appreciate, especially if rates come down in 2024), and the resulting expected monthly payments on a new mortgage. $50k might be the right amount, but if you haven't already projected monthly P&I on the new home at $50k down, I'd recommend doing so before committing remainder to investments.3. 

The bank has agreed to place a second mortgage on it, allowing me to use it as collateral for other flipping projects without needing any down payment.