You could then wholesale the deal to another investor or owner occupant for $20-$25K down and pass on a good payment and low interest rate that would have a rapid pay down on the principle amount. 

Typically, these rehab lenders have in depth knowledge of rehab loans and are in an excellent position to come up to speed rapidly and give you a funding answer.

I live in an area that is currently very low income, but is rapidly expanding.

@Roy N. thank you for your rapid response.

I went to school at western, trying to find a couple properties back that way to invest with my brother that lives in grand rapids.

I (will soon) invest in the east Texas area, lots of schools are growing extremely rapidly there...

This helps stay competitive, in the local Grand Rapids are market. 

Once you pay the collections the best and really only way to increase your score rapidly is to responsibly use credit, and my credit I mean credit cards. 

We might hit 20% of selling price, but that is purely because of rapid appreciation.

If you aren't hoping for the 1% or...I now like the >2% market that I've found, I hope you are investing in areas that are rapidly appreciating...then that would make sense.