You also will struggle to find inventory. 

I have read that the housing inventory has been increasing.

I understand that conventional loans doesn't account for repair needs.  

Personally, I'm betting my own money on it, looking for investments now that our inventory has creeped up to about 4 months supply, which is still pretty low compared to most markets.  

Conventional

Getting such loan is actually easier in many cases than conventional financing, I've done it personally, hundreds of my clients did it, and thousands of other BP investors did it. 

However, I can't use either a conventional or rehab loan.

I have bought and sold over 1,000 properties for my own inventory, and did Bigger Pockets Podcast #82, and have spoken coast to coast from Manhattan to San Francisco on real estate topics, and wrote a book on my experiences.So I can't say I did it all on SFH, but renting houses has been a big part of my real estate investments since I first started investing.

People HOLDING, reduces available inventory to buy, for buyers. 

I'm seeing renovated inventory sit, then trade well below list in a large portion of the ATL metro.