There are lenders that do not have this requirement of course, but they are mainly hard money lenders or local portfolio style banks. 

I know they raised a lot of money though

I told them that I work with real estate investors that would be able to help them and put some money in their pocket to help them with their crushing debt and bills so they wont go into foreclosure on both houses How did you finance this deal?

Can't say I enjoy real estate, but enjoy what the money allows me to do :)

If having a lower monthly payment is more important to you than getting as much equity (money) out of the property as you can, then borrow less.

To start you need money, Your money or someone elses.

When you say the lender is "heavily involved" with the renovation funds, its no different than hard money.

By house hacking It lets you get in the game with minimal money down (3-5%), while also covering your mortgage and gaining real-world landlord experience.

My guestimate is that 500 to 1,000 of those properties were livable homes.The vast majority of those homeowners were only one year behind on their property taxes.There is no real money to be made from redemption of livable homes in Arizona though.

If you have a self directed account and invest pre-tax money into illiquid assets like syndication or mortgage notes they will come in at a value of less than the principal.