Flipping a wholesale into a 203K?

[Ben Skove]

As I'm crunching numbers, a thought came to me:

What are the possibilities of taking a wholesale, doing some initial work, then marketing it specifically in terms of a 203K loan?

Cons: I know that most people want to be able to walk into their dream house, and can't envision what things might look like otherwise. It looks like the holding time can be prolonged by the long time it takes a 203K to be approved. The pool of potential buyers is smaller.

Pros: A small mortgage (for this area and type of house) and being in an area where people can get ADDI and Welcome Home grants for downpayment assistance as well. Investing a smaller amount of my money strategically to get a decent return.

I haven't seen this happening, so I figure there must be some significant problems.