Financial types please!!

Hi all,

So I have searched the archives with no joy… wondering if anyone has some input that could answer this query:

Can you use an unsecured personal loan as a 5% deposit and purchase costs for a house?

For a case study, could you: 
– Show a record of savings by paying off 20k secured personal loan at a rate of (as much as) $1k/fn;
– show a bank balance of 3k legitimate, and 7-8k non-legitimate savings (say it were 'gifted'); then
– borrow enough on a personal loan to cover a 5% deposit, purchasing costs, and basic reno's (carpet, paint etc). 

That is basically the situation we are in at the moment. A number of properties that are 'too good to be true' keep popping up and getting snapped up in my preferred area. We want in on one of them, but after smashing the personal loan my partner got for her car and motorbike we have only got about 3k to put toward a deposit…

I like the idea that doing this could get us an investment property, and we could turn it around by xmas (for rent). Whereas, to save enough for purchase costs, deposit, and reno would likely take us until mid next year. But would any of the major banks go for this???

I also like the concept that by borrowing for a deposit, stamp duty, and renovations this also constitutes an 'investment expense' and should be tax deductable… but I am not sure if the tax man/woman would agree with my logic here???

Your thoughts?