Conventional financing for investment property in need of repairs

[Tim P.]

Hi, I am trying to get conventional bank financing for a 2-family investment property (NOT primary residence). I met with a local bank and am pre-approved. However I am finding that the good deals (foreclosures, estate sales, etc.) need obvious repairs - which will interfere with conventional financing. But a construction loan is too stringent/complicated and 203k rehab loan doesn't apply. So I feel stuck... I am over-qualified for the purchase price and have the cash for the 25% down payment plus the renovations.

Does anyone have experience working with local banks in this situation to get the conventional financing approved, despite necessary repairs? Has anyone put money in escrow to accomplish this task - or any other tactics? Thanks for any tips!