@David HodgeWhile the CAP appears simple and consistent on the surface, it is one of the most misused and deceptive ratios in investing.  

It takes off the surface of dirt and you can just nicely put poly over them.  

On the surface this seems very good, to improve the neighborhood and discourage slumlords and problem tenants.  

Go to the Grand Canon, even off the edge of a cliff they have a tourist attraction with a glass floor bridge and deck, so there can be uses for almost any square foot on the surface of the earth.....you just need to recognize that use. :) 

I think @Colleen F. is referring to surface-mounted molding.  

Haven't been able to get financing because we can't put skin in the game, so we gotta get creative.Our plan is to talk to the seller about doing seller financing, with the seller paid their interest (and the principal, of course) when the property sells post rehab.....so that would take care of the seller.  

If they are, the have some skin in the game to make this project a priority.

Is that finishing surface durable enough to satisfy you as the landlord?

This would definitely increase your cash flow position and you would have more skin in the game for the mortgage lender.A couple years down the road, you could do a HELOC to pull cash out for your next wealth-building purchase.Good Luck!

A true buyer will put skin in the game, spend money and get inspections done, and make a legitimate attempt to close the deal if the inspections clear.