I made improvements over the next 8 months.

I intend on buying and holding and improving the worn apartments over time as they turn over.

Worse would be to sink money into a property and then find out that someone has a senior claim so they get your improvements for free.Do better deals so there is margin to pay for a property escrow.

As you need time for the credit score to improve get time on your side.John Corey

Susan,The FHA loan in question is called the 203k loan---will set that aside because of your stated reservations (other then lead paint removal, all improvements that would be required by HUD would be for energy efficiency).

Will you lose money on improvements you made that are too much for a rental property?

I have seen people who wholesale close and then sell after cosmetic improvements.

Using a lawyer is one way to help improve the odds as you now have the lawyer liability insurance on the line.Pick up William Bronchick's Wealth Protection book ~$14.00 on Amazon).

I would love to make a lot more but I dont have a lot of capital/credit for improvements.

They will want your loan balance to be under 80% of the original value, or will want you to show you've made improvements that have increased the value.