Most banks or credit unions simply wont do them post the GFC..

And where do you think you can get rents.We've been able to secure 80% loan to cost on these types of deals with a credit union recently. 6% is a good rate, but I would see if you can shop around the LTVGood luckGino

Just wait until a sec 8 tenant fails to recertify or loses voucher and you need to evict these people who have barely any money/credit to find another place.

Hard money and I was able to acquire $90K in credit lines from 0% APR credit cards.

I’ll have $50K saved and $8,000 in credit lines. 

I'd imagine the interest rate plays a large role in what discount is given, along with house value, down payment and credit score of mortgagor.

The owner owns the home free and clear, and then took out a reverse loan-HECM line of credit about two years ago.

If you dont have great credit, 9.5% is probably about right.

The only downside for me is that they use a credit card which my property management software charges a fee for.

Traditional banks sometimes balk at it because they see it as riskier, but local credit unions or regional banks tend to be more open to it, especially if you can show a solid plan for development or resale.