If I buy the same home pre owned none of these options exist and it’s about the same price.  

When ever you think your ready you just need to call the bank and get a pre-approval. 

Costs fluctuate like the stock market so some of the guides / tools out there are using pre-pandemic values which will sink you in a heartbeat.Have you looked in local REIGs to see if you can find a local flipper or contractor that you could shadow on a few walk throughs? 

Came across a property thats going into auction Tuesday from a pre foreclosure.

Here's how I explain this to Buyer's.There are three main things that could cause you to default on the loan (which would likely make it less profitable for the lender).1) You don't pay your taxes, you get a tax lien on your property, you foreclose, the lender loses money.2) You have significant damage to your property, in theory you might not have the cash on hand to fix it (thus insurance), and you can't stay in the property, maybe stop paying your payments, you foreclose, the lender loses money.3) You don't pay your mortgage because of a life event that changes your income (thus why lenders underwrite you with stricter standards than pre 2008), you foreclose, the lender loses money.Even if you can poke some holes in my reasons above, if you're curious why something is a certain way, follow the money.

I talked to a lender a couple of months back and basically they told me they couldn’t get my a pre-approval for anything above $240k and that was only if I agreed to an FHA loan with a second loan on top to cover the down payment.

Account Closed-   I recommend getting  a loan pre approval  in place for your idea - this will allow you to confirm you are approvable  plus it  will allow you to see  the  numbers and  become familair with current rates and  what  payments and  cash for  closing  look like  ......based on what you  get in place for this - you can then  begin looking at  properties to  see  what  type of properties  fit in  with the rental income and  your budget 

Then, the website will ask you the questions to find a match that has been pre-screened by HomeAdvisor and BiggerPockets:Good luck finding several quotes, and let me know how it goes!

The only thing I’ll tell you to be cautious on his pre-payment penalties and making sure that the seller is receiving your payments every month.

Cancel the deal and secure the EMD you paid.You do not provide why you switched lenders or why you were not pre-approved before you made the offer.