There are several reasons for it:- Lots of union contractors expecting union prices- Contractors having more work than they can handle in the spring/summer, so they take higher-paying jobs- Not enough buyer demand for rehabbed houses (meaning you can't charge a premium and recoup renovation expenses)- Strict codes and inspectors requiring higher rehab costs than other locations for same work- Long winter delays means inefficiency in getting reasonably priced work done in winter months

There are credit unions that will give you 10 conventional, true 30 year mortgages fixed.You should max those out first.No one would go to commercial adjustable in this environment, unless they are maxed out.I am at that 10 point now and considering commericial, because that's my only option.

He has consistently bought one property a year.Get established with a local REIA (Real Estate Investors Association) and network for a seller finance or potential partnership where you bird dog a deal and have someone bring in capital that doesn't want to manage it (some skin in the game will always help get someone else off the sidelines and bring them to your deal.If you have solid credit call local banks/credit unions.  

I just purchased a duplex in union grove wisconsin and I need some contractors to help me renovate it to my standards before I rent it.

I know some credit unions will do one, but most banks will not.  

@Jeffery NealI know a guy at Scott's Credit Union that says he can do 25k Loans but the homes have to be livable and pass  underwriting (via an inspection )

Check out credit unions.

My credit union recently changed thier lending rules and no longer does cash out on rental properties.  

But it might be worth it to get the fixed rate over 20 or 30 years.For commercial loans, you should talk with local or regional banks and credit unions.

Local credit unions may do it for you.