Good luck, look forward to seeing the finished product!

The demand for the product is there.

I would never use them for another loan product.

Since this is rental income, I will not lose sleep at night for temporary declines of real estate value.Real Estate Owned (Assets, income, debt):1.

Also most deals with higher COC that I come across are lower quality products. 

The 203k is a great option if you are going to be living there and while what @Travis Sperr said is true about the loan amount it sounds more like the banker just doesn't have the product in his arsenal.  

This is what makes it a portfolio product.  

Based on research on the Inglewood market and comparable homes, I made an offer that was significantly higher above asking - but apparently they got multiple offers of above $300K (asking was $224k), and my offer was declined.

If you can put down 10k, consider a dIfferent loan product.3.

So what do you guys think, I don't want to be carrying another property for 30 years with an FHA and private money rehab, but would offering the finished product as lease option be an attractive exit to any of you guys?