I don't have any interest in pursuing this project for 4.5% - I just wanted to make sure my figures were in-line with reality to ensure my pro forma was not off. 

This is one of the biggest reasons that every state has licensing laws, they are in place to protect the public ensuring that those dealing in real estate have the knowledge and background to deal with the public responsibly.At law, the rights of an owner are favored over a buyer, a lender is favored over a borrower and consumers are favored over a dealer. 

Some lenders even offer the ability to extend the term of the loan if needed.If you plan to buy, renovate, and rent for cash flow, you'll want to ensure you can qualify for a traditional refinance within a few months/years of taking on the project.

I've also been doing this since the late 70's, so I know my way around things to ensure all is legal and on the up and up.

Also there will be an appraisal as part of the mortgage process to ensure you aren't overpaying.Good luck!

HI Bradford,Most lenders can do the 203k FHA streamline or full K / standard program or the home style conventional loan program.The problem is most have not done a rehab loan program or have construction experience  or the process on the lending paperwork side.There is quite a bit of paper work such as:- scope of work + revised scope of work or adjustments- consultant review depending on the depth of your construction project and work being done- resume for contractor- certain lenders have requirements for contractor experience such as you cant GC (general contractor) your own project and such- reserves or margin of error in the project such as the 35k streamline 203k loan which only leaves about 28-30k of actual construction cost with the remaining 5-7k for reserves and contingency- only 203k standard FHA can finance your carrying costs (so you dont have to make a mortgage payment during your 6 months of construction)- Home style conventional rehab loan cannot have a project that is more than 50% of the after improved value (meaning your rehab cannot be 250k on a 450k valued project after you finish) youd have to lower your rehab to 225k or less in this example) This is not limited on 203k products- much moreAfter the construction details and process theres the typical financing aspects which include regular FHA or conventional qualification guidelines.The rule of thumb though is to qualify for way more than you need or to do a max purchasing power assessment to see how much borrowing power we have to ensure we have enough room to budget for the 1) purchase, 2) rehab / construction budget, 3) reserves and contingency budget to fit in loan approval criteria.Let me know if you have any questions on what to look out for.

Let them know your strategy, your goals and what your business plan is to ensure that your business plan aligns with theirs and you can both work towards the same goal.

The question i have is how many per week and ensuring you have the time to screen and then make offers on the callbacks.

@RJ Nickson Another way to mitigate your risks on this deal with direct regards to Section 8 or VA tenants is to ensure that the Tenant Screening in the front end is well carried out.

The actual cost of lifestyle is a lot lower than this monthly figure before being 5x'ed because there's reserves and other funds built into that like rehab funding for contractors, materials, set-asides to buy more units deals and multifamily and etc then this figure is 5x'ed to ensure there is enough margin to weather the ups and downs.