@John MoonGiven the information above, I believe you have two good options: 1) Finance all three separately on conventional, FHA financing (under 4 units)2) Approach a local bank on the deal.

That's a bank requirement.

The new property, SFH2, is worth $115K after the rehab.John now owns SFH1 which is worth $125K, SFH2 which is worth $115K, and has $10K in the bank. 

I even tried withdrawing some credit from the Bank of Mom, but alas, the bank was tapped out and the best I could muster was about $2,000.

I own 3 properties two are in contract I am the bank the third one is going into contract soon. 

The tenant doesn't own anything until the option is exercised and they actually buy the property.Owner financing is the owner acting as the bank with a promissory note with the terms of payment (principal amount, interest rate, number of months).

Don't forget these because some banks won't refi until you have a proper seasoning period. 

You'll want to be sure you know your timeline and talk to a bank about potential refi once the property is rehabbed because you'll want to refi ASAP to get that HML paid off plus they usually only do 6-12 month loans anyway. 

 Mark, thank you for your offer, yes, I'm going to need your help, as soon as I can find professional advice in regards to the financing process; I think my situation is a little more complicated, I'm still evaluating the situation myself, since my visits to local banks were not helpful.

The banks are based here, many investors are based here, and so that lends to Charlotte being ahead of the trend.