We just bought 1 Duplex that needed extensive renovation.  

Use a FICO Improvement coach like Blair Warner http://upgrademycredit.com/services/The terms I use are term 12 months, with possible extensions, 3% down, market rentsales price =  current appraisal or within 5% or current appraisal.Understand you have to also look at what the IRS considers a disguised installment sale and to prevent that.See http://www.biggerpockets.com/blogs/3/blog_posts/40...Best of luck!

This way the HML isn't giving extensions forever and tying the money up when they could be churning it.

Need to think about doing any modifications as well, modifying an existing note is the extension of credit just as making a new loan, so you have loan origination issues as well, servicers are licensed and aware of loan origination requirements as well.

In my blog I discuss this strategy extensively, with lots of great information.

People saying he should just blindly accept the deal must not have extensive development contract experience.

When I asked for a 2 week extension, the seller said no.

Real Acquistions is known to have a fairly extensive database.

We wanted to start flipping/holding, but we had extensive knowledge in wholesaling so decided to start with what we knew.  

I would fill out a 1003 app, get a 12 month lease with 12 month extension if she pays well, send her to a mortg loan originator with the 1003, give her a ROFR (right of first refusal), send her to upgrademycredit.com to improve her FICO, go to the bank and have her do a auto withdrawl savings for 1/24 of 3.5% for 3.5% in 24 months to get a FHA loan later in 24 months.1003 app