One idea is to find someone who is also in the game that you could partner with that could provide the extra cash for the down payment. 

@Jessica Geisler When you are doing cash out to buy other properties you can't do calculations solely on current house positive or negative income.

As we plan for financial independence, and calculating our target financial goal, one big (unkown) piece of the puzzle is health insurance costs.

But I’m not dumb, and I don’t want to pay an extra $900 for something I can manage myself. 

A local real estate attorney can draft you a note and a security instrument (deed of trust, etc) for this lending arrangement.It would be good to have a loan servicing company handle calculating/collecting payment for a small fee (like how property management companies manage your rentals for a small fee).

What I do is I calculate the estimated profit I would make from a fix and flip.

I would have no problem to add the extra cash if they dont want to negotiate, and if I feel like I really want the house.2) i see in this website people hoping that the houses they are trying to buy appraise at the offered price.

Yes, through my Mortgage Broker sources, consisting of Banks and Mortgage Lenders, are offering I/O payment options as well as Hard Money sources.The Stated Income ALT loan programs for Florida are offering the I/O payment options as well.And to those who turn their nose up at I/O loans, when is the last time you made an extra payment on your Non-tax deductible car loan?

@Keith Nelson I did my calculations according to $180k.  

I think the issue I’m having is based on the numbers if I do a cash out of $125,000 which is what I have into the unit and amortize it over 15 years I’m breaking even after vacancy and repair calculations.