Buying a $100k-120k house that requires renovation for someone that has no experience renovating or operating in that out of state market is a great way to set a pile of money on fire.

Thank you,Inga I would do 150% the rent and require them to pay for a monthly cleaning service

We required it to be moved off the lot at buyers expense. 

It might require repairs and cleaning.

Begin by meeting with the builder to understand his requirements.

These loans take more time, require more docs etc. 20% down requirement (you are closing one time for the construction -- includes land -- and the permanent loan).You could expect rates in the 11-15% range for HML/PML.

Also your Notification of Cancellation requirements?

But it requires some renovation and i am looking for funds because he cannot finance renovation cost.

My main concern is that once the property is rehabbed and rent ready, what qualifications do banks require to refinance? 

Maybe it's worth finding a cash-flowing asset that you can invest into that doesn't require a new mortgage on your part -- something syndicated or a NNN TIC property where you're just buying into a portion of the property and its existing debt load.