The 1st building rehabilitation cost around $650k. 

Acquisition indebtedness does not include an obligation, to the extent it is insured by the Federal Housing Administration, to finance the purchase, rehabilitation, or construction of housing for low or moderate income people.

Office TI's can be very costly when you bring new tenants in adding to the cost to rehabilitate. 

Looking to grow my company by investing in REO/distressed properties and build a diversified portfolio of rentals/rehabilitations.

Our mortgage lender says that those are bad ideas for something so short term, but his option was getting a rehabilitation loan from them on top of the home loan.

I need advice on this house I came across, the guys say he's sailing for his dad, the house needs total rehabilitation but it is brought up to code.

In these instances, you will need to either buy the property out of pocket, rehabilitate it and then refinance it or find private money to purchase the property and/or rehabilitate it ... then refinance using a conventional lender.

Either way it devalues the property.I say renegotiate for a much lower price to account for the actual rehabilitation costs or let them both go.

With my previous employer, I gained significant experience estimating cost and managing building rehabilitation construction projects.

Are you planning to {cosmetically} upgrade the building and flip it or renovate/rehabilitate and hold for the long term?