And I know of some institutional investors that have entered this space with similar rates.  

Rehabbing windows and starting interior millwork.Closed Cell spray foam under roof for air tightness and max R-value in shallow rafters:Basement walls lines with 1.5" EPS foam board before framingSuper expensive historic reproduction windows that meet egress

I have also placed them in the corner of a larger kitchen or found space for them in a bathroom. 

If I buy at auction for the 108 I think I would be fine but it will be tight on cash after the 100k remodel.

So I just have to sit tight, save and work on paying credit cards on time.

Even the big banks are bowing out of the mortgage lending space due to the higher costs of doing business.

This was a $3K/mo rental in a tight market.  

In the end, we put in an entirely new central A/C and forced air heating system, all new pipes, new sump pump, and a lot of new electrical.In any event, despite being way over budget, I think the rehab came out pretty nicely…The exterior:(Before)(After)This laundry room space later became the breakfast nook and part of the kitchen.

You'll need 25% down, maybe 20% if you find a local bank.  110k and $1400/month in rent is going to be a tight deal.  

It means to me that you are being tight and very possibly difficult to negotiate on price.