Based on your numbers, and assuming you have a credit score high enough and have never filed for BK, you shouldn't have an issue getting approved for an HML to buy/rehab the property that I would estimate at about $370k-$375k (which includes 100% of the rehab costs).

Bob - I have five occupied padsplits under contract right now with Fernando Corona and have closed several with him this year.Normal DSCR brokers have issues getting this through underwriting - it's important to work with a broker / lender that fully understands how to get these to CTC.I'll PM you

The issues can be local so look for someone in your area who is posting and try to contact.   

Shayan,Best option to avoid issues and stay risk free along with having a better approval chance would be to go with a Cash out refinance.

Redlining IMO would only be an issue if @Jimmy O'Connor said to stay away or refuse to do business somewhere; he did not do that, he just pointed out property characteristics.

But you have to ask proactively, and be mindful of how long you stay in forbearance to avoid long-term credit issues.🔹 Insurance Challenges – Even when insurance pays, it rarely covers the actual cost to completely rebuild.

The issue is cost.

Hi @Mindy JensenI had the same issue as  @Deborah Burian.

Leverage will not change the effort or risk in the areas OP identified.  

Both told me the apartment floods so bad amongst other issues.