As the seller I would pay for the energy audit, do the analysis on the work to be done (cost vs savings) and then market the home with a prepackaged improvement contract that would meet lender guidelines (solar, EE windows, etc). 45 day close to allow for enough time to do loan and obtain permits, occupancy COE+2. 

>have a single family rental in Merced, CA that I believe has a slow appreciation: bought for $170k in 2005 & its now worth about $400k.Because that period includes the Great Recession, that is a very good appreciation rate and better than San Diego had over the same period.3% loan is tough to beat as is a property tax that is ~50% of what it would be if you purchased today.  

I am focusing on trying to find off market deals and working with creative finance since expansion is slow moving based on my salary, and I'm too impatient to wait for the duplexes to earn another down payment.Is there a financing option that I am missing to get a loan for a down payment?

Are you willing to start in less popular markets before competing with experienced companies using the big markets?

I am wondering is there any hard money lenders that can provide 100% financing on investment property and also provide rehab loan for short time period?.

There needs to be a really good reason, or this loan may very well be denied, even if DTI and everything else lines up.Going from a 4/2 1.5 hour commute, to a 3/1 45 minute commute? 

My dilemma is that I worry that commercial lenders won’t fund any renovations or wrap it into the loan.

This got me looking into 24 month Bank statement Non QM loans to help my financing.

The biggest change will impact seller finance lenders who will be required to be licensed as a mortgage company once they exceed 3 loans in a consecutive 12 month period and will apply to all entities they use.

If you refinance the property now the loan would be $100K at 20% down and $80K would have gone to repay the original loan.First, if these are your numbers for rehab cost and after repair value, it is probably not a good deal to begin with and you shouldn't be doing it.