I called national lenders to try and get a traditional 30 year mortgage but was told that, due to federal regulations on fees relative to amount of loan, they couldn't offer a 30 year mortgage less than about 100K and only 15 year mortgages between 50-100K.  

My contract states i have subject property under contract with owner of record and i intend to sell it immediately after closing with owner of record.Well now i just got a letter from Division of real estate and regulations saying i have 3 options (election of rights). 

Even savvy private lender will probably reject a residence, thanks to the heavy regulation of such loans.

Unless I'm missing something epic with this place like no plumbing and no electric exists, you should be able to sell 75% of this deal to an invest for cash and make both parties very happy.

I am afraid my deal is too thin,  my budget is $50k for kitchen , 2 bathrooms, deck, refinish floor, whole house painting, simple landscaping, new  furnace and water heater, and some electrical and plumbing work. 

Without reading the regulations, I assume this would not be allowed:"Line 14Investment InterestInvestment interest is interest paid onmoney you borrowed that is allocable toproperty held for investment.

Good suggestionOn one of my first rehabs I had an issue relating to major unexpected deficiencies in electric and plumbing systems that were exposed in demo and not in the budget. 

Where west side were normally newer ranchers and easy to get rehabbed without dealing with lath and plaster.. old electrical plumbing. etc etc.

A Reg D fund will cost anywhere from $15K-$30K to have a competent securities attorney write the PPM, Operating agreements, disclosures, do the appropriate filings and provide guidance for promoting your fund while staying compliant with SEC and state securities regulations. 

If it's a house from the 50s/60s never updated, then you might have galvanized plumbing and old cast iron drain pipes.