We have acess to the cash to take down and complet 10 at a time 450KTHe local Bank has already loaned at 20 year AM 8.25 (prime+.5) for 6-% LTV cash out but only after tenant has made 2 rental PaymentsIt is a Revitalization type scenario..Friend has already completed 25 of these over the last year and only has 6 left in inventory.... but sales all but stoped in August and Septemberr.The banks are still looking at this as a Community Redevelopment Act money play so once fixed we can unlock our cash and then some....I will search for the 50% rule but find it HIGH for a direct Managed property that has been COMPLETELY rehabed... new wiring, new plumbing pipes new hotwater heater new heater....

If you're going to do major rehabs that conventional lenders won't fund, you need to track down some hard money lenders.

This includes Security deposit handling and inventory/condition documentation.

I've had success with people who couldn't get approved for conventional financing.

we started investing in RE (SFR) just over a year and a half ago and have managed to purchase 3 properties all with conventional financing (20% down).

Real Estate inventory is at record highs.

The market has slowed and inventory has increased but prices have not come down much, maybe 5 to 10% so far.

A conventional lender will figure out your not actually on title and refuse to do the loan.

Hard money would be useful for the initial part where you buy and rehab, but you would still want to get into something more conventional for the long term.

What is this borrower doing to fix his current problem so that in 6mo to 1year they can refi with conventional financing?