Moving to a portfolio model—where a pod (1 PM + 2 VAs) manages all aspects of 200+ units—streamlined operations and improved accountability.

How much have you over-improved the property?

Then you may shop in that price range.Tip: check with your local credit union: they will consistently have better rates and often the underwriting of loans is done locally.Mike

Could you send them a credit/debit card you can reload from America?

Unfortunately many of the improvement costs do not deviate greatly when you’re renovating a lower cost property  in a particular market compared to a more expensive property  in the very same market which makes it difficult to absorb the improvement costs in some areas.

Others tap into personal savings or use business lines of credit for more flexibility.

I think they are just an extremely conservative bank and that is their interpretation of Fannie's guidelines.I have already gotten approved from some other banks (credit unions), so I'm not worried, but I am curious if anyone else has run into a bank telling them they need at least a 20% down payment on 3-4 units, regardless of it being FHA or not.

The short answer is I look for 9% min and try to press it to 11% with those strategies along with rental increases once improvements are made and the tenants know you actually care about the property.

Check with a few local credit unions as they usually have the best HELOC offerings.

I don't charge security deposit or move in fee nor do I care about credit.