These are done between the buyer (you) and Seller.The situation that is most common to find these properties are in a foreclosure proceeding, or pre-foreclosure. 

More great news, our market just keeps on delivering. 

As others have said a partial exchange is possible, and common.

Does this kind of increase seem reasonable?

I always look at the exit strategy for the property to determine which kind of Creative Finance I would use.

Its a fairly common strategy.

During the "fix up" process, you would use a different kind of loan that will end up converting to a DSCR loan once you have tenants living in the unit(s).So, I would need to use maybe a construction loan for the renovations and then convert it to a DSCR loan?

It seems like a common challenge, and any advice you can provide would be invaluable.Thank you in advance for your help!

@Brian Dolbeare This is a "it depends" question for sure, but in most cases street parking is pretty common here.

I assume any painter / handyman doing your turnover could do that kind of touch up in almost no time for almost no money.