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

You will not be able to sell to someone using conventional financing if the lender checks the title closely.

Where I am (Los Angeles, CA) CAM throws a lot of round tables in big conventions centers.

With a conventional 30 year loan at 7%, your payment would be about $500 per month and your positive cash flow would be $125 per unit per month.Now, let's say that you assume price and terms are equivalent.

Seems pretty likely which ones are more motivated to strike a deal and unload their inventory.

You can not find that exact same house again as the buyer yet as a seller getting some cash when a buyer backs out will make you whole.Lets assume the lawyer knows the local conventions even if the law says differently.

You have to inventory everything at movein/out, deal with stained table tops and upholstery, and repair/replacement when a tv or other appliance dies during a rental term.Vacation rentals OTOH, must have everything...linens, flatware, small appliances, probably cable and phone, etc. etc. but in theory you get a substantially higher rate for that type of unit.

The rental market there is really strong and the houses are really cheap to buy.We are looking for other HML and also conventional lenders to refinace to a lower % rate after three months.... in KC.

What you can do is use more conventional financing.

Most conventional lenders no longer allow seller carry backs behind their financing.