The “cost” of this lower level of risk is a lower yield on the money invested.

I've been looking at a lot of multi family buildings here in NH, and since many of them are older homes that have been converted into apartments (2-4 units), many of which have common heating systems, so the rent includes heat.With a background in (commercial) energy management and utility billing systems, these seem like they can be good opportunities for me to go in, lower rent and recover utility costs (subject to existing leases of course).

Some lenders might recognize some level of loan to cost(+/- 80%), but you will have to verify your expenses and they will make sure you are bellow 65% of the new value by appraising.I recommend that if you are serious you write a 1-2 page plan, put in a pro forma deal of an actual property you would buy, along with a breakdown of the rehab portion, how you plan to manage the tenants (or if you a have a professional manager), ect.

High level thinking: $100,000 purchase @ 6-7% commission = ~$6,000-$7,000.  

What is your tolerance level for not so nice areas?

I consider the score and the items on the score, along with stability of job and level of income as a whole.

I'm not too sure how I feel getting on a personal level with our customers. 

Not sure I'm willing to go to this level of frugality and/or have anywhere near this amount of discipline but they still offer some good ideas that may be feasible...

Thanks again for your warm energy.

On the wholesale level