@Gary Landon  if there is a note on the property  then he is doing a wrap.. and you make the delta between the two...

So the delta is $110K.  

Many do this that are starting out and get in way over their heads.. thinking Hey I bring them current for 5k  ( which is basically all the money I have.. and I am going to make the delta... the delta gets spent on consumer goods no reserves are ever established.. tenant goes bad.. it becomes a bad deal all around.So careful with it. 

I will caution you in that many of the Cap rate that you see published reflect investment grade properties (ie institutional buyers) so that for smaller properties the "delta" is very wide.My suggestion to you is that you develop your own cap rate requirement (equity vs debt - see band of investment analysis) and then apply that to each prospective investment.

I am considering going with Delta Community Credit Union.  

as stated above if your seller.. and you have an existing mortgage you can1. sell sub too and collect your equity.2. do a wrap and in essence wrap the first or simply do a second.buyer takes title sub too you get the delta.

The number you have is the top-end of what you could pay for the property and still have a profitable rental in the end.If this second number is greater than what you arrived at as the value of the current business, then the delta is your negotiating space.  

I know we like to classify property like they are commercial properties .. but what are you buying C's Bs and you know some markets Cs are Bs in others and Ds in others.Your spot on with regard to community banks... most have it right in their lending charter they can only loan to those that live and work in the footprint which is usually within 100 miles of the market.PM is the key and bears repeating.. also remote rehab as you stated can be everything from semi rewarding to down right risky to downright wipe out.. this is why turnkey is so popular granted you can garner some delta between cost and turnkey mark up but you have to have the time and ability to do that and its not realistic for beginners or those buying just a few properties.  

I had a line of credit with my bank and i would hypothicate the notes and tag them to the credit line.. this let me draw 50% of the note value out with no tax.. and the payment coming in from my buyer was higher than my bank payment so i also got the delta and when it paid off i did not have to discount.some will talk about this as also selling partials.. all though in some arena's folks think partials are securities so do check that before you let someone talk you into that aspect.. the hypothication is the way to go if you can muster it.

.  (-$500)- Maybe $1k per year in marketing/legal fees (-$1000)Total delta would be $26400 - $2417*12(PITI) - $2112 - $2112 - $500 - $1000 ~ -$8k per year, not accounting for any depreciation benefits.Does this look in the ballpark of what I'd expect?