What I would want to do in that situation would be take the performing asset to the local bank, get a 6% interest loan with a 15-20 year amortization, and then go to private money/HML for the rehab project, then refinance it when it's producing. 

As I am moving along in my education on RE I am starting to see a major need to track local market performance.

Just went to it and it looks really brand new.

Right now I'm currently brand new to investing, I'm looking for my first purchase to be a multy unit in the Topsham Brunswick area of southern Maine.

Pay to perform is the way it should be.

I am brand new investor from Naples, Florida.

@Christopher DeitzI live in LA, I think master leases are a great idea, shoot for $500 a month positive, use a performance lease, owner gets paid when Rei gets paid

Finance is not real estate that most take lightly, while underwriting guidelines exist now for seller financing there is also a side that RMLOs probably aren't aware of, that is looking into the future as to the probability of a borrower performing  as  expected, obtaining other financing, secondary market underwriting is easy, predicting the future takes more skill and experience.Good luck :) 

When they get the itch to demo a building (and downtown has a LOT of dilapidated buildings as we both know) they always look into the costs of new construction permits, costs of engineering/designing the structure(s) and getting them approved by the city, and the costs of hiring private construction contractors to build a brand new structure...  

One final note is that in the northeast it seems like every house I look at needs a roof so budget that in from the beginning if the roof is not brand new.