Biggerpockets is filled with EXPERIENCED investors, builders, bankers, and every other conceivable link to real estate that you can ever imagine.

I'm in a small town and my banker knows me personally.

that will be the rub  very few rehab loans will go 85% LTV.unfortunately the industry is full of mortgage brokers these days that just can't get it done and promise the moon and don't deliver.I would be talking with your personal banker and see if they can help you.. hopefully you bank at a small local community bank and have a close relationship with a banker there..

My banker buddy suggested countering the owner's financing offer with a 10 year balloon, if she doesn't accept, negotiating a 5 year at 5% with an increase to 7% for years 6-10, and then 9% for 11-15 with no prepayment penalty, or something to this effect.RE: your last paragraph; You seem to be making the assumption that none of this research has been done yet.

His name is Peter Toerig and he's with Coldwell Banker.

I know being a banker you may be a little more strict with your lingo but we use this rule everyday when helping clients choose between one investment or another. 

@Jay Hinrichs The banker I spoke with probably misspoke and meant 75% Loan to Cost rather than Loan to Value, as I would agree with you.

I do not know if there is still an FHA program for such a purchase, so make sure you have a good mortgage broker or banker that knows the ins and outs off the FHA program.

Some great opportunities to 'House Hack' in Montco.Couple items to consider;Get Prequalified with a Local Banker in the area that is active (Don't sell yourself on a 2 Unit, Might be a 3 or 4 unit out there based on your qualifications and rental cash flow to monetize your mortgage)Identify then a active real estate agent to identify real estate inventory based on your qualification and understand FHA appraisals and requirements.

Hey Mike,Just started in the real estate game myself as an agent for coldwell banker.Young hungry ready to go.