Seller is agreeing to loan me the funds for a downpayment and closing on two properties.

I have an offer from a lender that is currently asking for a 12% fee and in return they will provide my business with 60k in Funding. 

If you have been at it long enough to have all the returns and financials the bank needs, but still have no luck securing the funds, Hard, Private or Asset Based loans are going to be your best bet.  

The problem is that I am out-of-state, would need funding, and a partnership with...preferably...a local, trusted investor there.

How do you explain transactional funding to these people?

If they used a Homestyle loan or 203k loan, even if the construction funds aren't dispersed immediately, I believe the mortgage would still record with purchase price + rehab costs.

The idea of BRRRR is that your repeat Buys are COMPLETELY funded by Refi deposit cash back!

That specific neighborhood is definately one of the least desirable in the city, although there may be some decent rental properties in the area.

The commercial space exterior also needs a face lift, but there are grants available for this that will match funds up to $2,500.Expenses:Management: 8%CapEx: 5%Maintenance: 10%Taxes: $3400Insurance: $2900Levy/Rental Fees: $1000Sewer: $1400Water: $1080Garbage: $900

The tenant has expressed multiple times the desire to change things (paint) but never actually did so I am taking this with a grain of salt and told her we would discuss again when she is ready to move forward.Whenever that tenant moves out, I would probably have to replace the current carpet due to age and mini blinds are also old (but functional), which is why I am considering the idea.In any case, I would be reviewing quotes, finances and contractor and figure out a way to make sure the work will be finished before I OK the change.