But they're going to require you to refi the entire amount (i.e. they'll refi the existing loan of 1.2 and add the 200k for rehab for a total loan of 1.4). 

I took my first job out of college in a similar field only to learn that it was a pretty soul sucking existence.

Basing estimates of rents and expenses based on my existing knowledge of local markets.

I also make extra payments on existing mortgages. 

They have low interest loans which make buying their property subject to their existing mortgage a great exit strategy for these sellers. 

These are not typical life insurance policies.If the down payment comes from an existing asset whether it is money from money market, money from savings account, money from CDs, money from heloc, money from selling stocks, money from stock margin, gift from family, money from life insurance it does not achieve a 100% LTV with respect to determining return.  

My situation: I have an FHA loan at about 5.5% and my understanding is that it usually makes sense to refi once rates are about .5% lower than your existing rate, which means I may need another .75 to 1% decrease in the rate.

If the owner used a Texas Association of Realtors(TAR) lease, a provision exists for finding a replacement tenant and charges the tenant with a % of one months rentEdit : Fred types faster than me !

They can also be available in existing neighborhoods in infill lots. 

So if you buy and rent out a retail center or an apartment building or increase the existing income the property is going to be worth more and can be refinanced easier.