You'll find too, there will be a lot of haters and discouragers along the way - ah your tenant will destroy the place, the AC will go out, you'll have to evict etc etc.

If a bank you are talking to wont let you count it as equity....then go find another bank.

And NO lender puts the loan proceeds directly into your account.. the funds are sent through an escrow either an attorney state escrow or an escrow in a state were the title and escrow company handles the funds. these things are just out there to scam those who are not really familar with how HML or private lending works.Glad you posted you wont lose your 1.5 %   once they get that in the door then they start hammering you for more money and more money until they bleed you dry and they never fund because they are NOT REAL .. thinks of all those scammers sitting in Bangladesh or other off shore areas.

: I have a private money loan option that would require me to pay the full loan back a  year from purchase, but I am afraid with this situation I wont even be able to get approved for a conventional loan this time next year as well. 

You can't use the new system to estimate if you're a newbie...its inaccurate, clunky, and wont allow you to easily do a whole house how you want to categorize it.The old system was great.

I also have never seen one redeemed by IRS.. and actually I like those because the newbie investors wont bid generally and those are some of our best deals.  

So the amount your spending on repairs mostly likely wont equate necessarily to a direct loss of equal amount. 

@Mark Younger no, they wont lend you money in the situation you described.

Many lenders wont even do loans that low.

This may destroy most of the potential partnerships out there, but the work now prevents the headaches later, I think.Hopefully something good, meaningful, and satisfactory comes across your desk soon.