Lau, generally if you are financing with a commercial lender- we lend for business purpose only and a rental property would fall under that category.

If its the business then asset based lenders may be interested.

The best scenario for the buyer buying subject to is to have enough money and good enough credit to qualify for a new loan at current rates should the due on sale clause be invoked by the lender  

If you need lender recommendations use the forum to find out who others have used in your area. 

The bank/lender helps with he remainder of the building and construction costs.

You and your legal, tax and financial advisors should review this transaction in greater detail, especially the PLRs, to ensure you understand the significant risks involved and are structuring the transaction as close as possible to the PLRs to mitigate some of the risks.

A lender that specializes in distressed properties can help you find the right financing for your scenario.The Bottom LineInvestors will find unique opportunities with distressed properties, but the myths need to be dispelled.

Dynamic pricing can be a great tool when reviewed enough and in line with the market. 

Perhaps a seasoned lender can step in and correct me if I am wrong! 

And they'll want you to pay off the loan pretty soon (and usually will you as the rate will probably be higher than banks) so there's that too.For this reason, we definitely prefer private lenders as they will (if you've built trust with them) often lend on the rehab too.