But typically you have to front the money for materials and labor and you only get reimbursed when the lender inspects the work.

If rehired we will reimburse this fee after six months of employment.

You might have to follow through with paying your full bid amount (to not lose your deposit), then FNMA would have to have the sale rescinded, and reimburse you, perhaps less any fees.

Therefore, the 55k is reimbursed (paid) by the two tenants (unless I understand that wrong).

I was considering offering him something like 12% of collected monthly rental income with reimbursement for materials.  

Ryan, I love the idea...so much so I just emailed a lender about doing that on the 14-unit property.As I understand it you still need to finance the improvements out of pocket, but at least you are assured that they are wrapped into the loan ahead of time and get reimbursed...or does the bank send payment directly to the contractors?

Perhaps I could front the money and get it reimbursed.

You have to go to the guest and ask them for reimbursement before you can file for AIrcover.

I'm not sure who would be willing to renovate the home she speaks of while waiting to get paid and reimbursed for material costs at the end of the project.

In both cases, they were bank ordered.These lenders were so far behind on their foreclosures, they had no idea that the properties were sold at a tax auction-I bought them.In one case, the contractor was horrible and the bank reimbursed me for damages.