Another option is to go interest only from a private source at 7%, same 1M loan on the asset, highly flexible and no additional fees as we have already got the construction loan in place on title.Currently leaning toward the private option, it could,  based on flexibility, allow me to improve my balance sheet and down the road approaching other lenders to get more of a residential type product given the property has 3 titles, rather than pursuing a blanket type loan through the commercial office.Downsides of the private loan include the interest only payments don't allow me to amortize the building, and the rate is higher.  

Try credit unions in Indiana, they have more flexibility.  

It was stressful, there was a possibility I wasn't going to get the loan, and I had to be flexible (had to do 20% down instead of 5% in order to get the loan and I had to escrow money to do repairs after closing.With any distressed property, especially a property without utilities on I would try and buy cash or private money from now on if possible.  

Off market and flexible seller gives you the time to sell your smaller units.

I liked dealing with them 2008-10, boy they sure were a lot more flexible then...kinda want to save my major renovations for the next recession :)

So for me lack of prior ownership didn't really make a difference, although I would love to have the flexibility that sitting on an SFH with a lot of equity gives. 

You'll need a specialty firm that can provide more flexible documentation in order to truly diversify. 

Small local banks and credit unions are a good suggestion as they will consider smaller loans to help the local community they are in and sometimes have flexibility with portfolio loans..

They range from programs that require full documentation but are more flexible on credit scores and credit events.

The most successful people I know in this business are incredibly flexible and creative.