small bank real estate loan on a foreclosure purchase

[Scott W.]

i have an investment property loan with a local bank for almost a year now. I contacted them about the possibility of receiving a short term loan. they said I needed to contact their commercial division.

I spoke to the vp and he sounded open to it. "we don't do many of these loans but we can...up to 80% of the purchase price for 1 year interest only 6% and about $1k origination fee. we don't need an appraisal. we can just go off of a local real estate agent comps."

I explained to him this would be more than likely for a flip...possibly a rental which I would go do another cash out refi. I'm leaning towards a flip to keep building my reserves and/or pay off some mortgage loans cuz I HATE DEBT.

question - has anyone had any luck lately with local banks and these type of loans? I thought they were dead after the real estate meltdown. we'll see if they approve me for the loan. I sent the mountains of paperwork to him yesterday so it's still way early in the process.