If they allowed for the appraised value it usually means that the lender holds more/all of the risk since the borrowers equity is stripped out either in part or completely which leaves the borrower them with little or no risk or 'skin in the game'.

I'd be happy to come over and show you my tricks for getting the light fixtures sparkling again.

Since lenders are looking for security, they want the borrower to have skin in the game.

Lots of good books to check out on financial metrics.]Some of my favorites:1) http://www.amazon.com/Investing-Duplexes-Triplexes...2) http://www.amazon.com/gp/product/0071603271/ref=pd...I'm sure there are other books too.I spent 10+ years in commercial and residential lending, and can tell you, there are many ways to skin a cat.  

Your best bet is to locate some good deals and break down all the numbers in a clean concise manner to show lenders that you have a good handle on what its going to take to make $$.Start saving money so you will be able to make a significant down payment, lenders will be more likely to give you a loan if you have some skin in the game.

Usually this type of loan would be made on the properties where the purchase plus repair cost does not exceeds 80% of ARV.Almost always, lenders want you to have a skin in the game”.Matt, in your case, you are buying the property at 75% of ARV but hopefully that will be somewhat offset by the fact that you are going to have $300,000 with low interest.

Any and all advice is welcomed, I'm thicker skinned.

Any and all advice is welcomed, I'm thicker skinned.

In having a discussion with a seasoned RE Investor this past week and picking his brain on the structure of his business I really deduced his success down to three main relationships:#1- He has a realtor/partner(he has skin in the game) who handles buying and selling, along with finding deals.#2- He has a "money guy" who provides him a line of credit.

On cash-out refinance now: Most banks will only allow you to cash-out 75%-80% of the appraised value, meaning that you have to leave 25% to 20% in the property (skin in the game).