We need situations like yours to be brought to the attention of the state regulators.

This bothers a family, but not so much myself and my target roommate audience.

@Ryan G. what did the loan officer say when you brought this up?

When I sell I will not be drawing on a pool of "home" buyers, my audience will be with investors who are going to want to run the numbers and see that they are buying a profitable business.

My realtor brought me the property as a pocket deal that had not yet hit the MLS.They were asking $155K, and I offered ~$140K.

@Jordan AlbersI love your idea and I think it could work if you identify your target audience and strategize how to market to them.

If there are pests, my tenants brought them.

@Andrew Freed Somebody else brought up this same idea to me - using the flexibility of a HELOC (and ability to make a cash offer) to secure the property, and then later paying off the HELOC with a fixed rate mortgage at a later date. 

A property was brought to me by a seller in Houston Texas.

I brought up seller financing but the seller was not up for it, so I offered 30k for the property which I estimate is around half of what it is worth.