Once you have some cash sales, you can reach out to a lender or two and have them start working on getting your project warranted to be conventional loan ready for borrowers.  

If you've paid cash, you can borrow 70% of a conventional Lender's Appraisal, immediately.

@Natalie Kolodij, don't forget FHA 203K Loans that DO allow you to also borrow the rehab cost!

I know lately, interest rates have generally been going down.For example, are FHA loan borrowers probably going to be "underwater?"

For example - and please bring up anything -  borrower credit history.

We also have a fair amount of borrowers who have rentals there. 

Originally posted by @Juan Casanova:@Jason Hirko; therefore we have had a hard time getting him approved for any type of loans, and the ones we do get are asking for ridiculous interests rates.Interest rates are a function of (among other things) the borrower's ability to maintain and repay the loan.

But the answer is NOT: borrow less.

I also have a moneylender which I am borrowing 40,000 from with an interest only loan at 6.25%, making monthly payments of 208 per month.

It's typically only an issue for borrowers that are debt free, and want to use all of that capacity on housing.