I'm a local Baltimore realtor and I know for a fact that this market is red-hot and everything, and I mean anything, can be sold for the right price.

Up front fees (outside of appraisal fees) are typically a red flag when dealing with a HML.

Political risks and plenty others in 25 years of selling real estate in Dallas area I have never sold one in the flood zone or probably anywhere near a flood zone.   

Zoning, buildouts, service contracts, advanced mechanical systems etc. none of which are encountered in residential.

The market is slow currently and you need to check flood zones and assess insurance costs when underwriting a deal.

Building for seismic zones is actually not all that difficult.

They mentioned how Dom helped them narrow down neighborhoods for a multi-family purchase and even flagged potential zoning issues before they made an offer.

Also look back on their application and see if you missed any 'red flags" so this can be a valuable learning experience for you.

Health and safety inspections don't seem to care much about zoning or permitting issues.

Here is some key information:Property recently hit the market and has 2 cash offers alreadyThe seller provided a pre-inspection report, which I shared with 2 different lenders, both think it may fail conventional financing due to potential structural and electrical issues (realtor thinks it could pass conventional)Seller has 100% equity but is behind on other payments (not sure of the urgency money is needed)This is my first attempt at an “investment” property so I’m new to thisI see 3 optionsMove forward with an offer using conventional loan pre-qualification-Not as attractive of an offer to the seller-Possibility that appraiser calls out structural/electrical issues that need to be fixed before closing, effectively causing financing to fail- Best terms and fewest loan fees for meUse a rehab style loan such as ChoiceRenovation-Even less attractive than a conventional offer to seller, but less risk of failed financing if appraiser calls out issues-Slightly worse fees and interest rates compared to conventional-Lenders tell me possibly up to 60-90 days closing in some cases, with red-tape for contractor requirements and draw schedules (sounds like the most hoops to jump through during rehab)Use a hard money lender-Most attractive loan option I can give to seller so I can compete-Much higher fees and interest rate for me-need to refinance into a conventional at the end of rehab (not familiar with seasoning periods but I think this is a factor as well)Which option would you do?