Most are going to want to lend on the rehab as it ensures the rehab to be completed,There are numerous ways to pencil it out in your favor though.It benefits to work with an experienced broker who can guide you through the process and put you into the best possible product and solution out there for you.

God forbid something happens and I either can't get rid of a tenant or can't find one, I would barely even be able to afford the mortgage

What is the purpose of the two million low-interest loan to Seminar Solution LLC?

It worked out beautifully... they met their deadlines and profit goals and had the break they needed.Perhaps selling one property sooner is the solution?

It's a simple solution, get more info.

These areas have affordable entry points, diverse housing stock, and steady demand.

I'm not sure how they paid so that may or may not be a solution here...The other thing is technically your tenant owes you still, and the prior LL may be liable for fraud.

Only other advice I have is to try to find a quad, not a duplex, in the nicest neighborhoods you can afford.

If they cannot afford it then talk to the bank about a short sale or let it go to foreclosure.

Or try the reverse - rehab a property to Class A standards in a Class D neighborhood and try to get a Class A or B tenant to rent it.Unfortunately, many newbie real estate investors are jumping into buying affordable Class C rentals - expecting Class A results.