The bank might turn a blind eye but if they get audited, your loan may become due.

I'll keep my eye out for any of those light rehab deals thank you.

Quote from @Gregory Wilson: A few things there, Brendan.First, an LLC with you as a member and your (wife, son, pal, etc.) partner as a 1% member will file a Form 1065 which is about one tenth as likely to be audited by the IRS as a Form 1040 with a Schedule E rental activity (which I presume you will attempt to show is an active business).Second, you want an LLC because when your local Alabama handyman drives his girlfriend's uninsured truck into a van load of U of A medical school interns on I-22 when he goes  to get some shingles for your roof, on your business, you don't lose everything you have or ever will have to an uninsured claim. 

When buildings like this do come up, it's usually placed on the MLS, but you're gonna need to keep an eye on the market for long stretches of time.

The problem is, all the ones I've seen, you have to keep your collateral funded or they start selling off your stake in order to keep it at a certain percent, so you have to keep an eye on it.

A few eye-opening online searches will easily indicate if this is what you want to get into.

Working here has been eye-opening and having spoken and worked with over a 3rd of REI's clients has been remarkably motivating for me to build my portfolio. 

Keep a close eye on the actual cost of rehabs and make sure your remodel stays in line with comps in the area to ensure profitability.

A serious accident with injured person requiring hospitalization can get to a million dollars in a month or two of medical care.Hence the efforts by asset protection specialists.For my part, I just use the LLC approach.

Cash flow might take a bit of a back seat but building a team you can trust and building experience are top priorities in my eyes.