Working with a local credit union.

Check the credit unions.

I was also looking into something like the Wells Fargo business Equity Line Of Credit.

Approval is also based off of your credit score, so make sure your score is up to par and you've done all your research on which financial institution you plan to go with.

We want to invest in buy and hold properties, but we feel that pursuing this strategy will better benefit our long-term goal due to the potential cash flow and appreciation of a property (if we buy right).

I can get a line of credit to start somewhere between 27-30k my private banker told me.

Or to ignore the hassle of a FHA 203k or construction loan, you could conventionally finance the house, put your 20% down, then finance the renovation by other means--credit cards, personal loan, car loan if you have equity, private money from a relative?

At this moment I have bad credit, 50k in a 401k and an oil field job in west TX.

I suppose they would receive the tax benefits, which is something we want. 

Or worse yet what if the person is "willing to pay above market rent" because they have bad credit (doesn't intend to pay), no verifiable income (can't pay), or a track record for trashing rentals?