I am having the same issue now. did you find a solution to this? 

Or if you want to get rehab loans through a bank, your options would be a 203k loan (if you intend owner occupy the property) or a HomeStyle Rehab loan if you do not plan on it being your primary residence. 

Try to think like the "home buyer" in this scenario, try to see it from their perspective and maybe you can come up with a relatively cheap solution to the problem. 

Closed on 7/20/2018- Repeat On our way to buying an undervalued 7 unit (waiting for amended contracted to be signed by seller as of Friday) All of this was funded by a HELOC on my primary residence.

Area median income is $53k, so with your average rent of $714/m ($8,568/yr) that's only 16% income/rent which would indicate there is some room for people to pay more - but only if the comps are either already at or very near that price point, or your units are far superior while not pricing residents out. 

Listening to people on BP talk about distressed or under performing properties, it sounds like the approach would be to cut expenses by passing utilities on to the residents.

This is because every town seems to keep their heads up high at the idea of allowing multi-fams in, but a large percentage of the single family mini mansions are actually housing multiple residents.

I would love to learn more about this process, such as do these homes need to be primary residences, vacation homes, strict rental properties. 

It was getting cold he said ok I also explained to him the outside ac  fan had a Edison summer saver plans which turns the fan off at certain times he under stood but wanted the box off so I called Edison And had the box taken off problem solved .a week after  i got a call from tenents saying they got a message via text from the water company stating continuing runner water possible leak.so I went noticed they were running a swamp cooler 24/7 they said the ac bill was high so weve been using a swamp cooler,and they filled up a above ground pool .i asked them did they call the water company to let them know of the pool fill up they said they didn’t.i called the water company to talk to them about the running water text my tenants got and explained to them  they run a swamp cooler that runs on the water faucet and they fillled a pool ,and all the household water use from  big family.the water company said that’s why there getting that text.they also said that for me to talk about there account water usage they have to call and give permission so I asked the tenants they refused.its gets better,I get another call from the tenants now sayin one of the toilets are making a noise.so thinking the worst I go just a stuck handle.so while I was here I th ought I might as well change out  all fill valves and floaters for all three bathrOoms so I did.was there a few hours making sure they were running properly and leaks.i remind you that was on a  Thursday.on Monday my tenants send me a bill via picture text from  a plumber saying all toilets leaking cleaned out all fill valves because they were clog and put in new flappers leak fixed.i asked the tenants why’ didn’t he cal l me he  had no excuse,so  I called the plumber he said they clogged  and he cha changed the flappers.so i come  Back how’s that if I just put all of that new four days Pryor on Thursday he couldn’t answer me free.now im getting I’m not  paying  my water bill because of the leak.now they sent me there water bill .with previous charges from there old residents claiming it as part of  a leak.do they think I’m stupid,there clearly trying to scam me.they won’t  Give me permission to talk to the water company and  the plumber is his good friend.

That guy loses his primary residence and his dream.