Small local banks are open to portfolio lending, but the property will remain in the LLC with a commercial loan with 20 year ARM's....

All it takes is one innocent nail into a stud wall improperly laced with piping or wiring across it to ruin the safety of the house and the people living within it.Find a seller who realizes they shouldn't do everything on their own or stand firm on a price that will allow you to take the necessary precautions to safeguard the home and your investment after escrow closes.

Aug 2019: Purchased distressed 20 units in Cincinnati, OH for $450,000 all cashProperty is 70% occupied with rents averaging $375/month, loads of deferred maintenance both interior and exteriorBegin to cure basic and necessary repairs for health and safety of the residents while we look for construction funding for the future rehabilitation projectOct 2019: Received term sheets that were satisfactory and began working towards the construction plan.

I've heard of conventional refis, 1st position HELOCS, ARMs, portfolio loans....my head is spinning.

Also, being in a different market with multiple properties would allow you to diversify a little more to allow more safety in number if a vacancy happens, squatter, repairs if someone destroys it.

During attorney review, the seller wanted to put in a contingency that said if items were not up to code they would not fix it and that if issues with the house weren’t a safety issue they wouldn’t address it and it couldn’t be a reason for me kill the deal.

In certain scenarios, like family safety, I would say err on the side of caution. 

I didn’t think I needed to be unfairly rewarded. but the difference and the reason your argument isn’t a fair analogy is that none of those things directly affected my health, safety, or quality of life. yes I do believe everyone is entitled to a safe home that doesn’t eat up half of their income.

However, I usually use 1.5% in order to provide myself a little margin of safety.

I have an eviction I want to pursue based on public safety grounds.