You do not need 10% to buy a foreclosure. There are many foreclosures that come onto the mls services. With the new financing reform laws coming out you should be able to get one for 10% down. Take a look at FHA financing as well as they have NonOwner Occupied loans available.
Also there are many seller that will carry 10% or more back on a note. You might want to take a look at that. Something doe snot have to be a foreclosure to be a good buy. Mnay homes are listed and sold at great prices that were short sales and pre-foreclosures. If you have a special auction or some source of foreclosures that is needing more thn 10% down I guess I would suggest borrowing the rest. Using a 401K or retirement plan is a great way to tap that additional downpaymnet.
Just remember the world has chnaged now. It is harder to get a loan but easier to find deals. Go figure.
I see great buys all the time that I can not get my hands on. Just not enough cash!
Best of luck to you in your quest to expand your portfolio.
Dirk T Knudsen
Re\max Hall of Fame
#1 Rated Re\Max team in Oregon
"The Real Estate Doctor"