Hi Gabe - Banks are usually a little more conservative, especially on construction loans so without a big track record or a strong credit score/reserves it may be difficult.

To learn more about the 401k loan rules, visit the following IRS link.http://www.irs.gov/Retirement-Plans/Retirement-Pla...

Getting started is the hard part, and if you haven't been in the game long it will be difficult to find banks willing to continue to finance as you will be highly leveraged without much cushion. 

There is deal nearby that I would love to have but it seems the financing is going to be difficult.  

However it is harder to do due diligence from out of state; for example it's difficult to drive by a property in Indiana from CA.

@Dan Robinson I just make things difficult for myself and go straight to http://www.dcoz.dc.gov/main.htmlthen http://zmap.dcoz.dc.gov/ for the zoning map.

ThanksGreg You didn't specify the upside nor speak of a value add play in the deal so it's a little difficult to speculate how to best structure a creative financing package.Assuming it's a value add play with good risk adjusted gains at the end of the process then maybe the safest route is to negotiate a wrap transaction with the seller, and if your are concerned about a due on sale clause make it contingent on the lenders approval.The seller will confront these same financing scenario issues with all other buyers so if they want to sell the property then they can either deal with the issue with a reset and able buyer, you, or kick the can down the line looking for another buyer who maybe willing to assume a less than stellar financing package.As the buyer though your only concern should be the financing package that delivers you title, assuming you plan on making extensive improvements to the property, and allows you to earn what you determine is a reasonable cash flow from the project.Options aren't bankable.

I think the most difficult part will be finding a bank to back me.  

Hi Joshua, glad to answer your questions,Congratulations on your entry into outside equity, I wish you luck with it.Yes, the deals are more scarce and  it is more difficult to identify opportunities as the obvious and easier deals are quickly identified and funded.  

It's a difficult subject to understand, so I thought I'd try to do a write-up and see how far I get.