We made assumptions about cost to stabilize the property and just assumed that us coming up with a reasonable capex escrow plus putting the positive cash flow back into improvements (vs. taking distributions) for as long as necessary would be good enough. 

Why isn't the interest from our loans good enough?  

Thanks LINDA D. there is some proof, but I honestly don't know (first time in this situation) if the proof is good enough or would even make a difference.

If the property is good enough, the buyers will find you. 

If you find a good enough one someone will partner with you on it or you can always call 12 more banks.

Of course I would do all my due diligence on any decisions made and would like to know if there's anything materially wrong with what I'm suggesting below.I am interested in buying a property that needs to be fixed up but is in good enough condition to rent.

How much you hire out is a personal preference but is also based on how much money you have to burn, your timeline for completion, your other obligations, and also whether you feel like you could do a good enough job or do the job at all without getting seriously injured.  

Special warranty deed is not the best but it is good enough and generally insurable.

@Alex Day You probably need to clarify, I assumed you were talking about REO auctions, which you could use traditional financing for as long the property is in good enough condition......others here assumed you were talking about the actual foreclosure auctions (the legal process for the bank) in which you wouldn't be able to.

My thinking is that if I can find a good enough deal, someone will finance it or lend me enough of a down payment to make it work.