In such situations, a bridge loan to rehabilitate the property followed by refinancing becomes necessary.

@Cliff DurrettIn some instances the first will take a discount to give the second some money, but in this instance they are so underwater I don’t think the second will approve this as they are basically getting wiped, and they have much higher BPO’sAlso be aware the lender may satisfy the loan but not release the debt, meaning they will allow for short sale but then get a judgment to have the balance of Debt validated and still owed

They can push a DSCR loan into negative cash flow territory which makes the rates even worse.

- Loan Type and Liability: Implications of personal vs.

If your exit strategy is Long Term Rentals (LTR) eventually you will have to go to commercial loans to acquire your properties.

Lender provides a first position loan up to 75% of purchase price combined with seller financing not to exceed 90% CLTV.  

You can however use a hard money loan!

It is pretty straight forward - I would provide the sourcing, the loan vehicle (it would be my primary mortgage loan), and the property management while my sibling would bring the downpayment.

something to note i plan on doing private loans and house flipping down the road also.

And at the end of the lease, any bills tied to the house (ie if they don't pay, you have to), get a copy of the final statement to show it was paid in full before you return the deposit.My water company won't let the tenant put the bill in their name, so I send them the bill every 3 months (it is quarterly) and they add it to their rent.When the next tenant goes to move in, get proof that all utilities are in their name before you hand over the keys.