@Ben Trageser the formal term for what you are describing is called a "non-occupying co-borrower"....and it has some very important destinctions:1.

Do you have a plan and goals that describe the outcome you are aiming for?

For the type of rehab loan you're describing, interest rates from hard money lenders generally range from the high single digits to the low/mid double digits.Points: What will the lender charge to originate the loan?

My experience is that many companies doing what you have described, say they are business credit cards, but they are tied to you and your personal credit report.

its free and they will decide if the transaction meets the regs.. the issue is when wholesalers say they are advertising hte contract they still have to describe the house and that is were the violation comes in.  

The word "overlay" is not used to describe what you are talking about. 

We have a large private Facebook group full of investors doing what you described.The big value you offer is a bank list with name and contact info so you don’t have to hunt for a bank that will do what you are describing.

@Thomas IngraoI don’t know if my opinion is too late to matter or help but I would suggest doing some research and find out who the fiduciary agent is, if they both have gone into a home either a relative or an attorney will be in charge of their estates and I would suggest getting in contact with them directly, my husband and I had a problem similar to what you are describing several years ago when he was buying a piece of property, being a Paralegal I did my background research found out everything about the property and the owner including finding their contact information, because when we tried attempting to submit our offer (because it was low) the broker told us the owner wouldn’t accept it.

There are a lot of potential problems when you pay for services by discounting rent, beyond the 1099 issue you are describing. 

@Danny Gallagher I can also recommend Cape Coral, seems to be a perfect fit for what you're describing!