You will learn a lot, save on rent, obtain equity via principle pay down, and if properties continue to appreciate you will be keeping up rather than falling behind.  

@David Rutledge, Good sense on your part to "worry" about things like how to pay off a balloon note, and how obtaining a mortgage affects your ability to borrow in the future.  

Another potential challenge is the difficulty of obtaining a non-recourse loan that would require me to put down ~40% on the property at a potentially high interest rate.

The best prices can often be obtained during winter.

Keep finding deals and unable to obtain financing.

. - in order to obtain financing - you'll have to personally guarantee any loans you might consider taking - this comes with a certain amount of risk obviously - because you're now personally responsible for the repayment of that debt.additionally, liability issues are also civil and may pertain to the property you own, etc.

So.... now that I already am in the situations, I am wondering how I can estimate what the overall rehab costs will be and how to go about obtaining a rehab loan or some kind of financing.

That probably will not happen, but if they realize that you obtained a loan on the pretense that it was a home loan when in fact it was an investment loan, they may.If you're going to be in this business, I would strongly suggest doing things honestly and legally in the future.Good Luck,Mike

as a reason to obtain a loan from them.

Is it feasible in this lending enviroment that with a low LTV or ARV i would be able to obtain a HML with no or very little skin in the game?