The property does not have to be occupied, but the lease does need to be executed.  25% equity is usually the sticking point for most with an FHA loanConventional loans will only require the executed lease to count the rental income of the property you are leaving.It might not even matter if you could afford both loans but if you need rental income the above is what you need to know.OVERLAYS - having said all of that, the bank could actually have rules that are different than what I described above. 

You appear to be describing a turnkey company, and people obviously do pay those prices. 

.- Proposed 250 unit seven story development is currently planned to be built in the heart of historic 4th Ave. [5]$137 Million UofA Honors College Complex-Described by UofA as being a "campus within a campus."

@Daniel Dietz, I think what you're describing is just fine as long as you can do it as a TIC with "Frank". 

@Denise Evans, what @Robert Kennedy described in this thread sounds like "wholesaling" or assigning a price quote received from the state for a tax certificate/deed.

@Alison Horton I think you're describing a whimsical winsome community that exudes charm and peace. 

You did not describe your experience in real estate.  

I know there is no magic pill and that this will require some grit, but I want to make sure I am not one of the people you described above. :) I love this community, it has been so helpful and I am just getting started!

But I represent numerous developers and builders in this market that do exactly what I described. 

From what you've described it sounds like the wall is 100% on your property and not his.