Since Banks wont lend for distressed properties/using Leverage?

[Lashon Ene]

Hi everyone,

I have a question that came to my mind today. I recently purchased my first property (from a wholesaler) and plan to fix and rent then Cash out refi. I was always told that it is better to use someone elses money/leverage to purchase properties because it has many tax benefit so once i cash out refi i plan to try to put 20% down on a multi-unit next.

My question is if banks will not give you a loan for distressed properties, what kind of properties should i be looking for in order to get financing from a bank and still cash flow monthly? I would think the best cash flowing properties are the ones thats distressed but banks do not want to give a loan for these.

You advice is needed. Thank you