If you did this and either held it for a year (I️ believe that is the standard, but I️ would confirm with the banking institutions you want to go with), you could then refinance, pay off your land contract and pull cash out if appraisal came back higher.Your original thought process is correct in that a bank wants the 20% (I’ve seen closer to 25-30% on commercial loans until you build relationship) to protect themselves from fluctuations in value, but they also want skin in the game.Good luck,Roger

Naturally, there is a benefit to HVAC and Electrical contractors.

I'm sure I would have to put some skin in the game and would be able to have a couple hundred thousand available if needed. 

They will require you have some skin in the game.If you're thinking, OK, me and the seller will sort it out after closing, don't do it.  

I actually expressed to them the need to exempt Mom and Pop Landlords (4 unit and below) and rental owners due to the onerous nature.

Leaving the same investor split of the profits in conjunction with the more conservative assumptions will naturally lead to a lower (and more believable) projection of investor return. 

Don't be pushy, be natural. if he is willing to sell, GREAT!

.- Any expense on line 14 "repairs" can only be added back with a bunch of supporting documentation matching exactly & based on a human underwriter's judgement call on the "one time" nature of it (and how that underwriter's mood is on that given day) on a one-off basis.

there are many ways to skin a cat.....one thing you could do is flip some residential properties until you have 160k.

That business model works well for more static assets (private placements) but is not generally best for investments that are more time-sensitive in nature or involve a lot of transactions (rental real estate, tax liens, etc).There are a smaller number of firms that provide plans offering checkbook control.