They are not likely to be excited about single digit interest rates but they may be quite flexible on length of the loan, whether payments are necessary during the rehab, the LTV (loan to value ratio) or other parameters.

Let's see what he said just yesterday about this market:***********************************************************************************It is interesting to see how people are pitching properties in this market especially now that inventory has picked up, prices are stagnant, and the double-digit gains are no longer to be had.

Return can reach double digits.

Lots of houses are still almost half of what they were at the peak in 2006-2007.  2 reasons I like SFR over duplexes, first is most of my tenant issues I've had over the years has almost always come from my multi-units, the turnover is a lot higher and with end game in mind selling SFR to owner occupants I believe I will get more appreciation then selling my duplexes to another investor also looking for a bargain.However, if I can find a good deal on another multi family I will still jump at the opportunity as even with the additional headache they cash flow like crazy for me.Don't be too nervous I do believe Lansing will see slow and steady appreciation again in the future, but your not going to see double digit increases like you see in many other markets. 

I will summarize that details here for everyone.Neighborhood class :BProperty Type: SFRProperty Management Fee: $95 per month regardless the price of the propertyProperty Management: In HouseMarket: Suburb ChicagoAverage occupancy: 3 to 4 yearTenant Type: Blue Collar workers with familiesRenovations: All the big ticketed items + cosmeticsCash on Cash Return: Using BP calculator with very conservative number - 8% Vacancy, 10% Cap EX and 10% Maintenance, we know we can get a property from their portfolio which will generate double digit returns.Finance: leverage with 20% downProperties to property manager ratio is also impressive.They do have eviction experience.

Refinancing has been working well lately but at some point the interest rates will rise and a refinance will result in further negative cash flow.I am pro So Cal investing but unless the properties continue to have double digit appreciation this one will have low/no return (too low for the effort).  

Essentially, my family has been here since the 80's, not born here, but transplanted :) Software sales & digital marketing by trade and fairly new to real estate investing, but hungry to learn and take action now!  

On top of severely compressed Caps (5%ish), you're lucky to hit leveraged cash on cash returns in the upper single digits.  

The digit after the dash on HUD's counters is supposed to indicate the number of bids (not bidders).

Meanwhile your lender sacrifices the opportunity cost of not having the money at work in a successful project with an experienced rehabber who is happy to pay a double digit rate of return because he understands leverage and has an efficient process that gives him a much larger pile of profit by borrowing a portion of the cost instead of limiting himself to only what he could handle with his own capital.