Bad tenants try to game it (you). 

I have have seen several "bad" appraisals and it is near impossible to dispute them. 

Now if you use a private lender then it is whatever you can negotiate and get them to agree to.Banks and even hard money lenders want you to have "Skin in the Game" In other words they want you to have some of your own money at risk so if things go bad you are less likely to walk away.

Maybe I could rent one room out while they are being done but I don't know how bad the renovations will be.

@Calus Glispie it’s not a “Myth”, but I think you’re asking the wrong question and as a result getting some seriously “bad answers”.Technically, you can offer “anything of value” as consideration to ratify your contracts.A dollar, a promissory note (which is a glorified IOU), a promise to perform in the future, $1,000.00, $10,000.00 even a million are all considered valid forms of consideration and could be used as Earnest Money Deposits (EMDs)....but the first two questions you need to ask (and answer) are:A) How badly do I want this deal and, (more importantly);B) How do I make sure I don’t lose my EMD, whatever it is.A) If you really want the deal, you need to show you’re serous, as most people have said in their responses).  

No deal is better than a bad deal.Phill

They vary slightly state by state and can bite you badly if you don’t know them.

The bad news is that it will be harder for you to execute your plan to raise rents and refinance, taking out the seller and recovering part or all of your down payment because the lower LTV that lenders will constrain you to will pigeonhole you.Another challenge to be aware of is that there are likely HOA dues—typically if only one unit is owned by a third party the HOA is formed and collects dues even from the developer-owned units.

Not a bad strategy.Feel free to tell me to mind my own business. 

I don't want everyone coming to me always.The only bad thing is I've had sales people come and go, and that's what we primarily use the Facebook profile for is marketing for rent and for sale.