For instance, the state of VA seems to want to use the money to buy REOs, rehab and sell to investors.

In one instance, the seller ended up in bankruptcy and the attorney's fees paid by the lender ended up on the fees inccured.

In both instances they do the initial screening on the applicants, and once they find someone who meets the minimum qualifications I still get the final say.

Hello BP,I'm an investor from Miami, FL with some buy-and-hold experience locally as well as investing in one syndicated deal (296-Unit Apartment Complex) in Dallas, TX as a limited partner.My goal for 2017 is to buy at least one mid-size apartment complex in an above-average growth market in partnership with a like minded investor with a passion for value-add multi family investing and syndication.I have extensive education and knowledge about apartment complex investing but no first hand experience yet.

For instance if you don't clear the 75% LTV on the refi and are not going to be getting the money you put into it back AND also having to bring some money to the table!

For instance, @Thomas Bouchereau, you are correct.  

The properties that I'd be able to buy outright in my area all need extensive rehab done.

I've searched extensively on this, so if you know of a good post where this is addressed, please link, I'm not coming up with anything.

The historic districts are going to extensive revitalization as well.

My information is based not only on extensive research of years of past cases but also personal experience with dozens of hearings.