Break down the wall and make your unit larger? 

Some properties are turnkey where factors can determine whether your knowledge base will suffice or you need a more in-depth view others are heavy deep renovations where it would be a best investment protection to know what you don’t know; possible septic issues, roof, mechanical electric... then it’s best to get a pro if your a pro or have one. 

somewhere is that there are lenders of some sort (not the usual big banks) that are willing to lend a little more creatively as in larger down payments or higher interest rates. 

Go to larger multi-families or commercial properties, perhaps investing passively in syndications to get your feet wet, then decide later if you want to start doing your own deals.

You can pick neighborhoods with $7,000 houses that are all torn up and then renovated to sell for around $30,000 or so but note that you'll end up with a different quality of tenant than if you picked a neighborhood with houses priced at $75,000.

It is a choice to take money from someone knowing that the property may never be renovated and most likely never actually offered for rent. 

Usually, properties under 50K require significant rehab and a larger loan.

I've done some renovations to homes in the past, but don't feel comfortable running a flip.

If not, you likely won't be using much water while rehabbing or renovating (couple hundred max for a few months??). 

Can acquire with the line, renovate, rent, and then bundle several into one aggregate loan.