The location all in,cost him X; he got an appraisal for the bank from CBRE national firmof XX and now the firm who called him mentioned paying XXX.

I talked to my lender contact and, as Kerry mentioned above, it's pretty uncommon that a traditional lender would offer a HELOC product on an investment property (non-primary home). 

I don't even mention interest.I did this recently and the guy picked the higher price with him carrying the mortgage for 5 years with no interest.Turns out a probate for one of his parents needed to be done so we are paying for this.

Local market knowledge is absolutely critical, and it helps to work with someone who really understands the landscape and its nuances.As others have mentioned, it’s a broad question that’s tough to answer succinctly, but I hope this provides some clarity!

As I mentioned above, we're both W2 employee. 

Sounds like you've stumbled onto a tremendous investment opportunity, if you're willing to take on the rehab risk you mention above.

As Jonathan mentioned it can be done, but they may require an appraisal of the property. 

Pull out a spreadsheet and go through the tools everyone mentions to run some comparables and take note of photos, amenities. 

Quote from @Jack Townsend: I heard David Greene mention a loan product that only requires a 10% down payment on the purchase price and 10% of the rehab budget.

Thanks in advance,RookieOf the areas you mentioned, Id put Germantown at the top of the list.