A better answer may be to substitute collateral, do your best "due diligence", buy with a plan for the worst and hope for the best, 'free clean' the place up, then finance and back fill the collateralized asset.

Bobby, Joel presents a viable option, but my comments about staying away from SBA has to do with the collateral taken on any SBA transaction.

Say you have 30K against a 100K property, 50% of the value is 50K less the 30K loan should give you 20K worth of collateral to assign...

The lender is going to appraise the house to be sure that there is sufficient collateral.

Only thing with bank financing is they want the land as collateral, but I'm using a separate bank loan because it was only 5% down.

If the project violates that min DSCR, then you're somewhat at the mercy of the traditional lender.. will it declare a default and charge you the default rate until the DSCR is back in compliance or will it charge you some fee to waive the violation for that year or will it charge you a fee and increase your rate until back in compliance or will it go all the way to accelerate the loan and foreclosure.Traditional lenders will tell you that they're cash flow lenders, not collateral lenders. 

You should hire a MLO to create a collateral file and underwrite the loan so it has full value should you want to sell it or borrow against it.

The banks around here will only lend with some collateral in place.

(compliance)If the remedies can be enforced is the collateral sufficient to support recovery?

There is one that I'm working with that WILL roll the money into the loan, but they require some form of cross collateral (ie. they put a lien on another property - if you don't have one with sufficient equity - they require you to hold money in an escrow account that's released at the end of the deal).The other part of it is they're usually more stringent than flippers - the majority that I'm qualified for will only lend up to 65% of the ARV - so unless you've good a hot deal you're still out of pocket money.With all that said, they still have their benefits (hence me working with them), but once I've got sufficient cash to do my own deals, I'm cutting them out.If you STILL want some lenders - PM me and I'll refer one or two.