In addition to conventional loans and FHA loans, if either you or your wife are veterans, the VA also has a rehab program.I'd be happy to discuss my rehab experience both as an investor and as a mortgage broker, and at least help you think through your options. 

Also for conventional financing, the DP can't be borrowed.

@Summer Shelton, FHA allows you to use rental income and so does Fannie Mae/Conventional loans.

On the consumer side with QM I can handle conventional, FHA, VA, and USDA.

Your goal is to plant the idea in their mind and create a situation where selling to you feels like the easiest and most logical solution for them.If you haven’t already, the first step is to get pre-approved for a mortgage so you know what you could afford if you were to purchase the property conventionally.

Conventional How did you add value to the deal?

Two separate property appraisers (at the direction of the lender) were sent out to appraise, and neither was willing to appraise it as a "residence", and thus financing fell through (conventional primary loan).

Conventional (only Freddie Mac See Section 5102.4 of Freddie Selling guide).

We're willing to live almost anywhere in the greater Sacramento area based on what we can afford, provided of course that the property is in a decent neighborhood that has a good chance of attracting responsible tenants.As for budget, I believe we could get a conventional loan for properties up to $600k, but my strong preference is to find a distressed property (or seller!)

Conventional loan, 25% down at ~7% interest rate How did you add value to the deal?