Last time I spoke with a banking officer there they were offering 80% LTV, 5 or 7 yr ARMs (1 point to relock for same term) for 30-yrs and low fixed rates on 15-yrs, but again, we were discussing purchase financing options. 

Save your time and effort and seek another solution.Cash out on a rental (sfr / mfu) will need to be on a Commercial Loan basis.The loan rate contributes very little to the mortgage payments (run different rates thru a payment calculator to see the differences), so don't go crazy on the rate.However, all commercial loans are ARMs and get reevaluated periodically, and that may be a deal breaker.

First off I have been a part of many 203k renovations for clients as we have a dedicated construction arm and team that works with clients using renovation loan products.

Sometimes you are better off making the offer through a third party, lawyer or agent, you want to be arms length to be safe.Try to inspect the property before bidding, sometimes the mortgagor (owner) will damage the property just to get even with the mortgagee (lender), like removing all the dry wall, pouring cement down the commode, blocking the vent line (from the roof) with a tennis ball (keeps toilet from working right), short circuiting the electrical system, over flowing the sinks....etc.Be aware you are paying interest from the date of the sale until settlement, if it take the bank 6 months to ready this property for transfer, it could cost you thousands of dollars.Be very careful............ it is easy to make a mistake......look at the property, talk to owner, talk to trustee and auctioneer, read the contract before bidding.2) How do I prepare for the auction?

Hi @Calah LopezI train folks in sub2, wraps, and  lease optionsSome sub2 must do's1 tell the home seller that there's a due on sale that needs to be reckoned with2 use a title holding trust w sub23 be careful of ARMs and Government loans4 have the financial ability to refinance the loan if it gets called5 best use of sub2 is short term like fix then flip6 worst is sub2 then wrap

Lender terms are 25% down, 5 to 5.25%, 5/1 arm.  

I read somewhere that 10 was the magic number and then you have to move over to a lender who does portfolio lending and puts you in 15 year ARM's as opposed to 30 year fixed.. is this true?

They charge you an arm and leg.  

We also have a property management arm to our business. 

My local portfolio lender offers 1-3 year arm commercial loans with a 20 year amortization period for investment properties.