Not an endorsement, but I know him and he's a straight shooter. :)

The commandment says six days work is done, not 30 straight days.

The lenders I know who will lend on a non-warrantable condo only do so if it is owner occupied.Perhaps a straight business loan instead of a mortgage might work?

NOW, if we are to have the HOA responsible for the interior of each of the units as well, here are the eminent problems I foresee:    - owners will be even more careless and act irresponsibly for their units since they don't pay for the repairs of the interior of their units    - because many of the owners rent their units (technically they sublease), they will be even less incentivized to maintain their units    - the HOA pays for all maintenance and repairs of units and owners get the benefit of rent    - repairs/maintenance of units is not properly proportioned to their respective owners, meaning that there is no incentive to keep my property up because any repairs will come out of the pocket of all other owners    - this penalizes good owners and rewards slummy owners    - this will put the owner residents at a big disadvantage because the owners who rent their units will cause maintenance fees to increase for all owners, especially due to high turnover    --> in Summary, this is a straight example of socialist-style system (I know, my family immigrated to the US from the USSR) and it will just sink our whole Co-op.  

I want to avoid a balloon note and would prefer to do a straight fixed rate, 5 to 7 year loan to payoff the $1.25M and own the building free and clear.  

But your post reads like: if they had told me straight away, we would have offered even more!

If you cant go all cash....one way might be to take out a straight business loan to buy it, or perhaps a HELOC against your primary.

Here's where I'm stumped and scratching my head...why would anyone go through the trouble of purchasing a deal like this from the wholesaler and go through the long repairs, headaches of refinancing, etc... in this market when you could easily put out a little bit more and buy it straight off the MLS.

All things a professional tile setter will know.Two reasons you usually see the same-ol'-same-old in most rehabs (IMHO): First, explained in the paragraph above... anything that requires the least bit of knowledge and experience outside the run-of-the-mill often threatens people... investors, project managers, GCs, subs... either from lack of experience or imagination.Second, most rehabbers go straight down the middle of the road, reciting the mantra "that's what sells."

Hi @Michael Clevenger - Why not buy straight out of the gate with a commercial lender?