Has anyone ever heard of this type of loan?

For a newbie such as myself, this type of group would be very beneficial :)

Hello Rob,This is an example of the type of investor financing that we have had success in closing for our clients in the past.

Plenty of landlord types with some down payment money would assume a loan if they can get the property at a discount.

You could look at some of your close competitors who have already done this type of renovation and find out what kind of rent they are getting.

I’ve had this happen in a similar market propped up by foreign investors and tourism (Costa Rica) and luckily was able to wait out the down turn but there can be long periods of time in this type of market where properties just aren’t selling at all even at a steep discount.

Also, multiple documented site visits with the city and utilities like @Rick Garrido said is time consuming but worth it for your evaluation.

Only a few loan types are truly assumable. 

I see from LA RSO guideline documents that "The rent level on a rental unit, after the family member or resident manager terminatesoccupancy, shall be restored to the rent level prior to the eviction, plus any automatic increasesthat are due.

Loan Details: - Interest Rate: 3% - Loan Duration: Up to 30 years - Maximum Loan Amount: $10M - Documentation Fee: $720 - Approval and Funding Time: 48 hours3.