Hoping my Dingle project comes off as nice. 

In my day when I did this we called those hypothecations.. and our bank would routinely loan 50% of our UPB.. and the hypothecation was done through the collateral assignment to the bank.and then when we moved into HML we have nice size credit lines for this we made a new origination and the bank took the collateral assignment as to 56% of ARV or appraisal.. that's how most of us HML did it pre 08.it was great we borrowed from the bank at 6 or so and lent out at 15 to 20 and made the delta..you get big enough lines and its pretty cool business. 

I have been wondering how I could possibly finance the rehab outside of the mortgage, but this wraps it all together nicely.

any mortgage under 20% is (most likely) going to require you live in it. if you don't want to live in it you are going to need a 25% (sometimes 20%) down payment saved up.

She merely trimmed them nicely and I thought they made the unit look nicer since the landscaping is seriously lacking.

That way I'll have more time to find a really good deal too, which is nice.

I simply recommend writing a nice, sincere, non-threatening letter and getting it out to the homes in your market you feel would be a fit for wholesaling. 

Some are nice and need little work and some are beat to death and would need major repair work. 

I agree the yields will be much greater however there is a nice piece of mind to properties paid off, more cash flow with less tenants.

Thanks @Thomas S..This tenant lives in this unit for many years and told us all the good words about former owner and kept the unit inside very nice but seems very defense herself from us as potential new owner.