That first picture reminds me of certain news stories....News stories that involve a group of people holed up or barricaded in a COMPOUND and surrounded by the ATF, the FBI, and state and local authorities. 

On the exterior we knew we needed a new roof.So what I had at this point was a 4/2 1492 sq ft built in 1996 in a sub division where I already own 3 other of these models so I could calculate in general numbers what the house would need being they were all built with similar layouts and finishes.Upon closing here is what the house needed to get back into rentable condition:While vacant home was broken into and all the copper plumbing stolenNew Flooring 1200 sq ftTwo bathrooms needed renovation since holes were made to steal plumbingNew water lines thru-out the houseNew light fixturesPaint interiorReplaced all the outletsNew Hot Water TankFix heart runs in the basementMinor cosmetic fixesNew roof I choose to go with metal roofs for the longevity and I am able to get them at the same cost as shinglePurchase Price 26kRenovation was 20kAll In 46kAfter 6 months I went to my banker to refi the property and it appraised for 86k they gave me a 80% LTV cash out refi 20yr term 10 years fixed at 5.5%Cash Out Refi          $68,000Cash in the deal      $46,000As you can see I was able to pull out more cash then what I invested by creating value I was able to pull an extra $22,800 Now I have had this property rented for over 12 months so I can give you my year 1 numbers:Gross Rents: $12,000Insurance             576Repairs                  138.77Supplies                136.22Taxes                   2517.47NOI before Debt  $8,633Debt Service         $5,616Cash flow              $3,017Now remember i have no cash left into this deal and I used the extra 22k of the cash out refi to purchase two more properties so my COC return is actually higher but for simplicity sake I am giving you simply numbers.Before Photos:After Photos:

So if you do get those funds from a personal/unsecured LOCs, you're essentially paying "unnecessary" interest for 2-3 months just to qualify for a loan.All of this sounds pretty risky to me; you're likely going to dig yourself into a hole, especially if you're just starting out and don't have experience. 

The home needs minor repairs like holes in the walls and there is a sections that is not finshed but can be done for a few thousand, just drywall .

We have a tenant who moved her boyfriend, which abuses her and damaged the apartment, big human-shaped hole in dry wall, broken window blast, and she ran away.

I am a big guy so I need a little more room under a house, but I still go under them, (if they do not have nice hard wood floors sometimes I cut holes through the floor to give more access).  

Or maybe you can simply poke some real good holes in my plan.Cheers!

This causes the investor to slowly end up in the hole over the course of a renovation WHILE paying interest on money they don't have. 

However, there is not much you can do, for instance, recently, when a teenage son of one of your long-term tenants decides to punch holes in walls and kick in the front door. 

Onsite managers protect me from some of the day to day drama but I make all monetary decisions and coordinate rehabs.