We listened to a few of Robert Kiyosaki's books and he made it sound like we could do no money down be being a little creative, and we could also do non recourse loans and we assumed that meant the bank wouldn't require huge capital reserves.

Another thing that may happen is your bank may only give you a 5 year fixed rate that then adjusts after the first 5 years.  

Also if it is a bank overlay and there is a bank who will do it in 6months is it a bad idea or frowned upon to go to another bank in 6months.

Since then I've found some local banks that are pretty investor friendly as well as some private lenders I work with.

The 'foreclosure' was on a conventional loan so the 7 year rule seems to apply.Anyone in my situation or something similar been able to do buy and holds without those traditional bank options available?

More likely we would have had higher holding costs for holding it while it was on the market and then under contract until it closed.My portion of the profit when split with my partner = $12,406.50Lease OptionPurchase price $72,150 (includes closing costs)Rehab $40,353Holding costs $2,184AVR based on appraisal $150,000Option price $159,900 for 5-year optionFinanced $112,500 on a 20 year mortgage at 4.69% (adjusts after 5 years)Bank closing costs $1,992Option fee $6,500Total into the property -$2,320 (each of us got $1,160 after getting the loan)Monthly cash flow $195.06 (97.53 each)If the optionee exercises the option just before it expires then we will get the difference between what we still owe on the property and what we are selling the property for and we will split another $50,258 ($25,129 each).Total profit $64,283 ($32,141.50 each).In summary, we will get paid a little less than 3 times the amount than if we were to just sell it.  

Ive been to several local banks here asking about lines of credit and none of them seem to offer that.

Whether a partnership agreement carries significant weight or not may be different in your jurisdiction.

When I wanted to transfer the deed to the LLC , I am told the bank wouldnt take it lightly and call the loan due.

I am having issues getting pre-approved through a bank as I only have one year W2 job history and two years self employment history, even though I have 660 credit 10K saved and we'll make around 70 K this year all income combined.