I have an 8 unit townhouse building,  its beachfront on Lake Erie, very unique property. 

Note that the term on these notes matters a lot; especially if you'll have a lengthy rehab where the project duration may possibly exceed the note term to get a marketing period long enough to find a suitable buyer.5 points, 15%13%, 4 points, 1 year, 70% LTV13%, 4 points; talking 90% LTC, 1-year IO, $750 processing9.9% IO, 3.5 points, no prepay, 1-year, 90% LTC70% of appraised value, 4 points, 14%, 95% LTC, 1 year65% LTV, 90% LTC; 13%, 3-4 pointsThe best lender I found in the country that would loan on new construction projects in Austin was 9.5% IO, 3.5 points, no prepay, 1-year term, 90% LTC.Local small regionals will loan at 85% LTC (the FDIC standard limit without carrying an exception on the books) at about 6-7% and 1 point.

You may also look for portfolio product from small regionals if the local preferred brokers can't get it done.

They will consider some of the rental income. since you're just doing rate and term as opposed to cash out, they might be able to work with you but your local broker or small/regional bank mtg rep will be best to coordinate the details with.

Create something unique and useful.

Sant SobhrajIt really depends where in Newark you are buying as that is unique market in its own right.Just a couple points of concern:Expenses are only 25% of gross income.

I'm an active rehabber in southeast Michigan (and about 50 miles east of you).Since you are somewhat local, you know the region.

., to get a DECENT feel for what a deal looks like, what one can sell for, and when to pass...Obviously all homes are unique, some require more repairs than others, I understand that much.

The only way to be successful in note brokering is to flood the local market with advertising, or launch a unique and difficult direct marketing campaign.

Notes are a unique business, while backed by real estate, they are not real-estate.