I noticed that most of commercial lender would only provide a financing term that shorter than lease term for single tenant property, so owner will have to seek refinance/resell at a time when the initial lease would expire within months time.

Unless it is a fantastic deal it would need to meet the 2% rule for me to be interested (this puts the value at $42.5k for $850/month rent).I can only speak as a buy and hold investor since this is what I do so at $26k it is probably worth it to a B&H investor to deal with the headaches of the area or an investor may be able to fix it up a bit and re-sell in the mid $30k's.Hope this helps.

Ann Bellamy, Bill Gulley, Chris Martin...Thanks for your input.One thing I failed to mention is when I first talked to this agent I told him I was interested in a property as an investment and he immediately asked what I wanted to do with it, did I want to buy and hold, fix it up and resell, etc.

To clarify, are you using the builder to build a house for you to live in/resell?

A new buyer who needs a lot of coaching and handholding to buy that first $30K house to turn into a rental requires as much time and effort as (if not more than) an experienced and well-funded buyer who is looking for a house to rehab/resell. 

A lot of times there will be restrictions on reselling within 90 days.

The best deals are the ones I keep myself and resell at retail.

So I'd like to tell you guys my plan, and I guess anybody can tell me if it's good or not.I guess to sum it all up, I'd like to use a hard money loan (unless anybody has more useful suggestions) to purchase foreclosures (in the Atlanta area) and resell them to flippers.

I also do Ebay on the side and make extra money that way reselling what I find at garage sales. 

The retail space is being sold to the manager that has been working with the current owner/landlord but its name will belong to the new owner of the building, meaning if he fails the business I could resell it (he will have no bill of sale as he is leasing the equipment from the current owner and I would be holding the name of the business myself as the new owner).I'm slightly apprehensive about interest rates going up too much after the first fixed 5 years, as this would eat away a lot of my cash flow, or my taxes going up tremendously with the renovations and adding a third bedroom in two units.Any thoughts?