It's taken a lot of cash so I've sold 2 along the way to keep paying for the rehabs.My experience has been that the quality of the product will determine the qualify of tenant you attract. 

Still, no lender can use the borrower's current status as a reason to deny a short sale but, the borrower would need to be in imminent danger of default.The lender, upon request by the borrower, must provide the borrower with any and all requirements for alternatives to foreclosure and give them 30 days to respond and meet the requirements of the lender.

Alternatively, negotiating a deal can be much easier if you're transparent as well.

@David Kelly Would you suggest another alternative for me to get capital to use for 20% down?

Not sure of your credit score or financials but you may be able to get a more attractive rate.

Some of them will have extensive training, some of them will have attractive commission structure.

I have a collection of 4 buildings (still negotiating 3) on a D+ street that I believe some reasonable aesthetic improvement could attract a C- crowd.

We visited Austin in September and were attracted to the vibe of the city, loved the mature trees and the river.

Another alternative is to sell with owner financing.

If a rental unit down the street comes available that is more attractive, there is nothing to keep them from moving.