If down payment is your one issue with qualifying there are down payment assistance programs available. 

What are fees associated with the Qualified Intermediary holding onto this money?

Lastly, if the tenant does become delinquent and we have to file a claim with Rhino Insurance to collect their deposit, we're adding to the financial woes of that tenant and putting them into an even worse financial position when they wouldn't have qualified in the first place.Thoughts?

Pilot a unit or two with this renovation spec and see how much demand you get from QUALIFIED applicants.  

I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.7.

If you are looking to use rental income instead of personal income to qualify for mortgage, you'll be looking at commercial financing.

These markets often have strong population and job growth and strong rental demand.But the reality is that even in more affordable markets like Columbus, you'll need about $50k-60k household income just to qualify for a conventional investment property loan (this assumes good credit and reasonable debt).

If it needs that much work will a traditional lender finance it and are you qualified to get financing?

If these groups are significant, it suggests there’s pent-up demand that could enter the market when one of two things happen:Rates Drop - Rates fall to levels that allow more buyers to qualify for the homes they want.Buyer Expectations Shift - Buyers realize that 5% rates aren’t coming back soon and decide to move forward.Based on the increase in activity I saw in Sept and Oct in my business, when rates hit low 6s, I'd say my market has plenty of pent-up demand. 

As long as the property generates enough cash flow, you may qualify based on the asset alone.Another route is to explore portfolio loans from local banks or credit unions.