However, challenges persist as reflected in the rise of nonperforming commercial real estate loans, particularly in office properties, prompting banks like PNC Financial Services Group, U.S.

There are HELOANs which are second position loans that you can use, typically 30 year fixed.

are they getting an sba loan ? 

Also as you say whether the construction loan is possible this way I'm not too sure.

All that to say, don't be afraid to block out the noise here, and elsewhere and trust what the step will do for you and your situation specifically.But overall it was the best decision my wife and I ever made, and has led to more and more as time goes on.

In reality what happens is you end up paying more for a "clean house" but because you are doing a flip people want new mechanicals (central air, 200 amp electric, pvc plumbing stack) so you end up doing a full gut or larger rehab then simple cosmetics and now your returns have shrunk.In your situation for your first investment I would be ok with a smaller return because of the experience gained, but for the next look for larger profit.

Um, I don't know your situation but in my residential areas I never supply fire hazards.

Then when I perform a good % of the work that we got paid full price for in the loan that's backed by asset being acquired. 

There are so many listing agent personalities that each situation will be slightly different and you'll need to practice too get better.

At that point I'd just be banking on the loan paydown and hoping for appreciation.