Reading posts in this thread is very inspiring...I am brand new to this world...and want to move to the 10% who actually take action!  

I have schedule E's, copies of leases, and building inspections have been performed.  

. $70K purchase price and $100K value), will lender perform a cash out refinance right after the purchase?

Typical, build a bad reputation through deceptive practice and then disappear and re-emerge with a new name and brand to screw people all again.

In the discussion that ensued he laid out property condition spectrum with three distinct points of reference: Fully Performing; Value Add and Rehibilitation Condition.  

I have the impression that portfolio lenders give loans based on the performance of the properties.

@DeKarla Kyle If you are brand new, most investors will not be quick to fund an entire deal for you.

If you do business with them you wont have to worry about what neighborhoods to stay a way from as if your investment performs poorly they will make sure you are successful with all the guarantees and promises needed in order to make a low quality property perform like a good one.I have copied the link here where you can see that the lifetime guarantee is part of their program.

If the rents support the mortgage and the note has a good performance record then the lenders will be more inclined to work with you.

New roofs, windows, doors and and trim accompanied by brand new cabinets, granite, appliances, flooring and fixtures!