Two Properties that will cash flow... Cash only deals... Help!

[Justin Wilcox]

I have found two properties that will cash flow and fit the 50% rule.  One I am particularly fond of because of location and price. The issue is it is coded as a light industrial property. Traditional financing does not work. I thought about applying to change the zoning but that appears to be a monumental task. 

I asked the seller if they would carry, and they are willing for $60k down. If I could find 175k cash to buy the property and than take a loan out against the property to pay the initial loan back.... That would be ideal. Hard money lenders are not interested. I don't even know if a portfolio lender would look at this deal? I do have $20k, so I do have SOMETHING to put into the deal. Just not much right now.

I tossed around the idea of an SBA but I would be needing 20% down or have the sole business generate income for the property for the 3.5% down but I am also W2'd which pulls that option off of the table. 

The other property, the realtor says that it won't pass inspection for electrical issues, roof issues and AC (also the windows are sealed so apparently this is a safety hazard?)

I am not as big of fan of this property but it would cash flow nicely... 

Anyhow, just looking for some strategies on how to make these deals work as I have done a lot myself and keep coming up empty handed. 

Thanks!