Hi @Eric Crump, @Russell Brazil is correct, including in the District (which is its own jurisdiction).

We are looking for a local bank that serves Hobart Indiana and does cash out financing so that we can get 80% of the ARV out.

I wouldn't go to the bank on that strategy (Literally).

Few days ago I came across bank owned house with price tag of $300k.

Thanks for the answer, what about a short sale, would the bank consider a cash offer (from a realtor) prior to a sherrif sale scheduled 60 days out?

You can also refinance your VA loan with another bank and replenish the 450k limit that you get (depending on your location the amount can go up).

I now am in the management consulting field and I am primarily working with banks on ensuring their compliance with lending regulations and internal controls.

I heard that the bank can consider their rents as income when coming to terms.Is this a good idea?

Who out there has gone into a local Credit Union or small private bank and actually got a line of credit.  

So if you were to buy with a hard money or renovation loan, and you buy it right, you could buy and fix up a house with no money out of pocket with the right lender and as long as your purchase, reno costs and reno loan costs are under 70% of the value of the home, you could then refinance into a permanent loan and hold it.There are some smaller local banks that have a rehab to permanent where you can buy the house and renovated it with the construction loan and without "refinancing" the loan converts to a permanent loan after the renovation is complete.