In addition, it's a given a HML will require a down payment, it may not be 20% if you can prove you have the experience to complete the improvements (not to mention the tax issues which I think make it a non starter for a lender).Alternatively, your best solution to acquire this property is to find a partner to buy this property with you or a private lender.

Lastly, I don't think Seattle or San Jose are particularly hot cities right now, so I've been exploring alternatives to buy-and-holds around the area.

Better alternatives?

Either way I don't see how you can win.Another alternative is to run your proposed deal past a hard money lender and hear what they say.

If you are bound and determined to go this route, be prepared for lot's of documentation gathering, appraisals, rent rolls, reserve requirements, DSCR 1.15-1.30 +/- and not much fun.If you would like to talk about alternative funding sources "outside the banks", let me know.Good luck.

It does appear an interesting alternative though.  

:)I would get yourself some education on alternative methods of finding deals, it's fun and from what you mentioned it appears you like rolling your sleeves up, researching, etc. 

We also have 25 licensed real estate agents at our firm who specialize in helping investors buy and sell rental houses.Our sister company does all the renovation and maintenance work, which allows us to be a true end-to-end solution for investors who are looking for discounted properties.Since we buy, sell, rehab, and manage for commissions instead of profits, we view ourselves as an alternative to the turnkey model that many companies offer.Personally, my dream is to own many more units across the southeastern United States over the next 10+ years.  

But it is a nice alternative.

Can be a less expensive alternative than investing in a pressure washer.