Remember you are using debt to make this investment, not reserves  sitting in your bank account so I recommend a more conservative investment approach. 

Commercial bank or local business bank - where they will fund as much of the purchase price and rehab budget as possible, typically will have a lower interest rate than option 13.

Melissa, not trying to hijack the post, but I am curious about cross collateral, as I own a 5 unit with a lot of equity and would like to buy using same bank, using the equity as a form of down payment and the new property income to justify a higher tha 75% loan. 

So on my Canby Oregon project 90 homes I did the PPM route with only 5 investors where I own majority and it is me that gets the bank loans etc and runs the project investors are all passive.

Is this a bank-owned property on the MLS or is this from a wholesaler?

Philadelphia has implemented various forms legislation over the years between abatements, land banks and density bonuses geared towards promoting development in areas that suffered from disinvestment and housing affordability challenges with some legislation having been more effective than others. 

See what the bank thinks it’s worth.

Most of my clients run their SFRs at a 25%-30% (excluding vacancy/credit loss) operating expense margin and most of the banks I deal with on their DSCR loans underwrite using 35%.

Do you have their banking info?

My thought is is use the Rent Ready feature of reporting his payment history to the credit bureau so it can work in his favor as a trade line, but I'm wondering if this is an unnecessary added step since he can already pull transactions on his bank side.